The major current assets that are used for short-term secured financing are ________.

Question

Quizplus · Accepted Answer

Accounts receivable and inventory are the two major current assets that are commonly used as collateral for short-term secured financing. This is because they are tangible and can easily be liquidated in case of default. Short-term investments and prepaid expenses are less common choices for secured financing, while taxes recoverable cannot be used as collateral as they are not considered tangible assets.

The Major Current Assets That Are Used for Short-Term Secured