Use the Following Information to Solve the Following Questions

question 145

Multiple Choice

Use the following information to solve the following questions:
During 2020 Ebert Corp. transferred inventory to Siskel Corp. and agreed to repurchase the merchandise early in 2021. Siskel then used the inventory as collateral to borrow from Southern Bank, remitting the proceeds to Ebert. In 2021 when Ebert repurchased the inventory, Siskel used the proceeds to repay its bank loan.
-This transaction is known as a(n)

• A) consignment.
• B) instalment sale.
• C) product financing arrangement.
• D) sale with delayed payment terms.

---

Definitions:

Salespeople

Professionals who specialize in selling products or services, often working on commission and responsible for meeting sales targets.

Implications

The possible results or effects that may arise from a specific action or decision.

Buying Decision

The process and factors influencing a consumer or organization’s choice to purchase a product or service, including personal, psychological, and economic considerations.

Restaurant Equipment

Various tools, appliances, and accessories used in the operation of a restaurant, including cooking, storage, and cleaning equipment.