Inventory is more attractive than accounts receivable as a short-term collateral since it normally has a market value greater than its book value, which is used to establish its value as collateral
Indicate whether the statement is true or false
FALSE
You might also like to view...
When a household borrows to buy a home, the resulting security is referred to as
A. a discount bond. B. a Treasury bill. C. mortgage debt. D. consumer credit.
When a bond has been issued at a discount, the carrying value at the end of one period is equal to the carrying value at the beginning of the period minus the amount of discount that was amortized during the period
Indicate whether the statement is true or false
Customer lists are classified as intangible assets
Indicate whether the statement is true or false
Madison Company earned net income of $75,000 during the year ended December 31, 2016
On December 20, Madison declared the annual cash dividend on its 8% preferred stock (par value, $150,000 ) and a $0.50 per share cash dividend on its common stock (45,000 shares). Madison then paid the dividends on January 10, 2017. Prepare the journal entries to record the declaration and the distribution of the dividends. Explanations are not required. What will be an ideal response