In the context of small businesses, which of the following statements is true of asset-based financing?
A. It accepts the assets of a firm as collateral in exchange for a loan.
B. All asset-based loans are financed against inventory.
C. Of all assets, inventory is considered the most liquid of a service company's assets.
D. It is a form of debt security with a standard denomination and method of interest payment.
Answer: A
You might also like to view...
_____ are entered to manipulate data, including adding, deleting, and updating data.
A. Foreign keys B. Primary keys C. Queries D. Reports
Which one of the following would be the most reliable type of evidence?
a. Photocopies. b. Indirectly obtained evidence. c. Observation of assets. d. Inquiry with the in-house attorney.
On July 15, 2018, Ellison Brothers Oil Company sold $5,000 of merchandise to S & G Company, on account. Ignore cost of goods sold. Ellison could not collect cash from S & G and wrote off the account on December 31, 2018. On November 4, 2019, S & G unexpectedly paid $5,000. Journalize the transactions on December 31, 2018 and November 4, 2019. (Ellison uses the allowance method.) Omit explanations
__________ can be internal or external to an organization and alter its ability to achieve its goals.
Fill in the blank(s) with the appropriate word(s).