Which of the Following Can Companies Use as Collateral for a Loan

question 36

Multiple Choice

Which of the following can companies use as collateral for a loan?

• A) prepaid insurance
• B) prepaid rent
• C) property, plant, and equipment
• D) retained earnings

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Definitions:

Creative Accounting

The manipulation of financial records and reports to give a more favorable image of a company's financial position than is justified.

Regulation

involves the establishment of rules or laws designed to control or govern conduct, typically enacted by a government body.

Natural Monopoly

A market condition where a single firm can supply a good or service to an entire market at a lower cost than what two or more companies could.

Least Cost

Refers to the most cost-effective method of producing a given level of output without sacrificing quality.