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Which accounts receivable issue involves reporting based on the invoice date or the due date?



a. method of aging

b. ease of verification

c. concentrations

d. selling terms

When a lender is assessing the primary types of collateral, what is the typical treatment of specific securities such as nonpublicly-traded stocks and restricted stocks?

Select one:

a. such securities are identified as primary sources of repayment by lenders

b. such securities are usually avoided by lenders

c. such securities are identified as secondary sources of repayment by lenders

d. such securities are identified as tertiary sources of repayment by lenders

How does a business banker establish the authority to borrow if the customer is a sole proprietor?

Select one:

a. obtain the firm's corporate resolution

b. obtain the firm's sole proprietorship resolution

c. obtain a copy of schedule C from Form 1040

d. obtain a corporate certificate of authority

What requirement in the lending process is satisfied when a business banker completes a UCC filing?

Select one:

a. evidence of authority to borrow

b. evidence of debt

c. evidence of collateral

d. evidence of the loan's terms and conditions

What term identifies the creation of a security interest in collateral that is superior to the interest of other potential creditors?

Select one:

a. attachment of a security interest

b. possession of a security interest

c. perfection of a security interest

d. liquidation of a security interest

What section of a loan agreement will specify that the borrower must maintain property, plant and equipment in good repair?

Select one:

a. borrower representation and warranties

b. negative covenants

c. affirmative covenants

d. loan or credit facility

Prior to establishing rights to the collateral, what must the business banker do to get a bank's interest in property that secures a loan?

Select one:

a. execute a UCC filing

b. identify the ownership and type of collateral

c. a preliminary interview with the borrower

d. a security agreement

What dictates the method used by a bank to perfect its security interest?

Select one:

a. the borrower's entity type

b. the Uniform Commercial Code (UCC)

c. the covenants in the loan agreement

d. the type of collateral

Which section of a loan agreement delineates what the borrower will not do over the course of the loan?

Select one:

a. representations and warranties

b. affirmative covenants

c. negative covenants

d. conditions of lending

What is the term or wording for a security interest in goods or software that are collateral for debt that has arisen with their sale to the debtor?

Select one:

a. actual possession for perfection

b. control for perfection

c. real estate mortgage or deed of trust (DOT)

d. purchase money security interest (PMSI)

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