Appropriate collateral for a secured short-term loan is
A) work-in-process inventory.
B) fixed assets.
C) common stock in a privately-held corporation.
D) raw materials inventory and receivables.

Question

Quizplus · Accepted Answer

Raw materials inventory and receivables are considered appropriate collateral for a secured short-term loan because they are liquid and can be easily converted to cash if the borrower defaults.

Appropriate Collateral for a Secured Short-Term Loan Is