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ABL Knowledge Assesment
By S C
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Last updated about 2 years ago
9 questions
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Question 1
1.
What percentage of total receivables does Xtreme Glasses account for?
Question 2
2.
What percentage of receivables are in the 61-90 day window?
Question 3
3.
What percentage of this business' customer base do Restricted Access, Inc. and Teal communications account for on a combined basis?
Question 4
4.
Question 5
5.
Question 6
6.
Question 7
7.
Question 8
8.
Question 9
9.
An account receivable is created when...
cash is received by the company providing goods or services
a good or service is provided and payment is expected to follow the receipt of a bill
a customer does not pay their bill for at least 30 days
advances are made on a line of credit
An asset based line of credit provides the borrower with...
money to purchase real estate on a long term basis
funds for personal use by the principal or guarantor
assets
working capital or cash needed to do business
Banks typically disallow advances on a line of credit against receivables that are...
current
less than 30 days from invoice date
less than 60 days from invoice date
more than 90 days from invoice date
The 75% advance rate against receivables is applied before deducting those receivables over 90 days from invoice date.
True
False
The 75% advance rate against eligible receivables is also know as
a 25% discount
a 75% discount
a 25% advance rate
The line of credit has a maximum commitment or maximum exposure of...
$4,000,000
$2,500,000
$2,398,427
($101,572)