Which of the following may not be used to secure a short term loan?
A) inventory
B) accounts receivable
C) equipment
D) retained earnings

Question

Which of the following may not be used to secure a​ short term loan?
A) inventory​
B) ​accounts receivable
C) ​equipment
D) ​retained earnings

Quizplus · Accepted Answer

Retained earnings are profits that have been reinvested back into the business and are not a tangible asset that can be used as collateral for a loan. Therefore, they cannot be used to secure a short term loan. The other options, inventory, accounts receivable, and equipment, are tangible assets that can be used as collateral for a loan.

Which of the Following May Not Be Used to Secure