The Process of Using Accounts Receivable as Security for a Loan

question 58

True/False

The process of using accounts receivable as security for a loan is known as pledging accounts receivable.

---

Definitions:

State

A political entity characterized by a defined territory, population, and government with sovereignty over its domestic and international affairs.

Sole Proprietorships

A form of business entity owned and run by one individual where there is no distinction between the owner and the business.

Million

A numerical term representing one thousand thousands, or 1,000,000, used often to describe quantities or amounts in demographic, financial, and statistical data.

United States

A country located in North America, comprising 50 states, a federal district, five major self-governing territories, and various possessions.