The Risk of Default on Pledged Accounts Receivable Is Borne

question 114

True/False

The risk of default on pledged accounts receivable is borne by the lender to whom the receivables are pledged.

---

Definitions:

Inventory

Raw materials, work-in-progress, and finished goods that are considered part of a business's assets that are ready or will be ready for sale.

Non-Value-Added Costs

Expenses that do not contribute to the value or appeal of a product or service from the perspective of the customer.

Schedule Of Activity

A detailed plan that outlines all the tasks, timings, and responsibilities involved in a project or process to ensure successful completion and management.

Costs

Expenses incurred by a business or individual in the production, maintenance, or purchase of goods and services.