Passage 3 Secured
loans involve the pledge of specific collateral. An example is a loan that is
secured by a chattel mortgage on an automobile or some other form of personal
property. Pledged collateral for secured loans may consist of a variety of
assets such as real estate, warehouse receipts, accounts receivable, plants and
equipment, trust receipts, negotiable bills of lading, oil runs, corporate
stocks, and bonds. The basic requirement of such assets is marketability. The
main reason for requesting that a loan be secured is to reduce the bank’s risk
of loss in the event the borrower is unwilling or unable to repay the loan at
maturity. Security does not assure that the loan will be repaid; however, it
does reduce the risk, since the hank becomes a preferred creditor in the event
of liquidation, and takes precedence over general cre A. security B. automobile C. personal property D. oil run
[简答题]Liabilities are debts owed to outsiders, measurable by money value, which will be paid to creditors using assets or services.
[单项选择]{{B}}Passage Two{{/B}}
Which of the following does not belong to current assets A. cash B. account payable C. account receivable D. note receivable
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