Who Is at Risk If an Indirect Loan Defaults on a Loan

question 24

Multiple Choice

Who is at risk if an indirect loan defaults on a loan with full recourse?

• A) The bank
• B) The borrower
• C) The dealer
• D) The credit bureau
• E) All of the above

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Definitions:

Inventory Management

The overseeing and controlling of the ordering, storage, and use of components that a company uses in the production of the items it sells.

Specific Identification

An inventory costing method where each item in inventory is identified and tracked individually.

Ending Inventory

The complete worth of goods on the market at the closure of a bookkeeping period.

First-In, First-Out (FIFO)

An accounting method where the cost of the earliest inventory items purchased are the first to be recognized in determining cost of goods sold.