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.

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Definitions:

Hierarchical Classification

A system of organization where entities are arranged in a graded order from broad to specific categories, often used in biology to classify organisms.

Seriation

The cognitive ability to arrange objects in order according to size, shape, or any other attribute.

Concrete Operational Stage

A stage in Piaget's theory of cognitive development where children (approximately 7 to 12 years old) can think logically about concrete events.

Tangible Objects

Items that can be perceived through the sense of touch, having physical presence and form.