Since Pledged Accounts Receivables Only Serve as Collateral for a Loan

question 84

True/False

Since pledged accounts receivables only serve as collateral for a loan and are not sold, it is not necessary to disclose the pledging.

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Definitions:

Average-Variable-Cost

The total variable cost divided by the quantity of output produced.

Marginal Costs

The investment required to manufacture an incremental unit of a product or service.

Variable Costs

Costs that change in proportion to the level of activity or production volume.

Fixed Costs

Costs that do not change with the level of output produced by the firm, such as rent, salaries, or loan repayments.