Ch16 Multiple Choices - M Multiple Choice Questions 29. (p....

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Multiple Choice Questions M
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(p. 494) Dan bought three new trucks with money borrowed from the First National Bank. If he fails to repay the loan, the bank will repossess the trucks. The trucks are A. bought with an unsecured loan. u B. bought with a line of credit. b C. collateral. c D. interest. i E. principal. AACSB: Reflective Thinking A Bloom's Taxonomy: Comprehension B Difficulty: Medium D Learning Objective: 2 L 30. (p. 493) If a boat manufacturer orders 50 units of fiberglass material and promises to pay the supplier at a later date, the manufacturer will record the amount to be paid as a(n) A. account receivable. r B. current asset. c C. long-term liability. l D. account payable. a E. equity account. AACSB: Reflective Thinking A Bloom's Taxonomy: Comprehension B Difficulty: Hard D Learning Objective: 2 L 31. (p. 494) The most widely used source of short-term financing is A. trade credit. t B. bank loans. l C. commercial paper. c D. mothers and fathers. m E. finance companies. AACSB: Reflective Thinking
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Ch16 Multiple Choices - M Multiple Choice Questions 29. (p....

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