In Which of the Following Loans Can Inventory NOT Be

question 23

Multiple Choice

In which of the following loans can inventory NOT be used as collateral?

• A) a floating lien
• B) a warehouse arrangement
• C) a factoring arrangement
• D) a trust receipt

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Definitions:

Governmental Fund

A type of fund used by government entities to account for activities that are financed through tax revenue and other governmental resources, focusing on fiscal accountability.

Capital Projects Fund

A fund used by governmental entities to finance major capital outlays, such as buildings, infrastructure, and other significant projects.

Financial Statements

Comprehensive reports that provide information about an organization's financial position, performance, and changes in financial condition.

Enterprise Fund

A fund typically used by government entities to account for operations financed by fees and charges for services provided.