Which of the Following Is a Restriction That May Be

question 146

Multiple Choice

Which of the following is a restriction that may be placed on a borrowing firm for a long-term loan?

• A) The borrower must pledge a certain amount of inventory.
• B) The borrower must pledge future sales.
• C) The borrower must factor accounts receivable.
• D) The borrower must pledge long-term assets as collateral.
• E) The borrower must pledge accounts receivable.

Understand the effect of changes in working capital accounts on cash flows from operating activities.

Recognize the importance and method of calculating quality of income ratio and its impact on financial analysis.

Acknowledge the mechanism of the indirect method for determining cash flows from operating activities.

Differentiate between cash and non-cash transactions and their presentation in financial statements.

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Definitions:

Disturbances of Thought

Any disruption or pathology in the process of thinking, such as disorganized thinking found in psychological disorders.

Emotional Reactions

The psychological and physiological responses that occur in response to stimuli that are personally significant.

Schizophrenic Patients

Individuals diagnosed with schizophrenia, a chronic brain disorder characterized by distorted thinking, perceptions, emotions, language, self-awareness, and behavior.

Blunted

A term often used in psychology to describe a reduced or muted emotional response to stimuli that typically evoke stronger reactions.