An ABL Facility Is Generally Secured by a First Priority

question 15

Multiple Choice

An ABL facility is generally secured by a first priority lien on which of the following assets?

• A)PP&E
• B)Deferred tax asset
• C)Inventory
• D)Goodwill

Identify the advantages of computerized accounting systems over manual systems.

Recognize the appropriate journals for recording various types of transactions.

Describe and analyze e-commerce.

Understand the process of recording transactions in ledgers and subsidiary ledgers.

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Definitions:

Accounting Profit

The total revenue of a firm minus the explicit costs directly associated with its operation, such as materials and labor, calculated according to standard accounting practices.

Implicit Cost

The opportunity cost equal to what a firm must give up in order to use resources it already owns for production, without direct payment.

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen.

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs.