Identify which one of the following statement is not correct? a. The credit limit under the facility of cash credit is sanctioned against the security of materials for sale of a business man by the bank b.

Identify which one of the following statement is not correct? a. The credit limit under the facility of cash credit is sanctioned against the security of materials for sale of a business man by the bank b.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter10: Auditing Cash, Marketable Securities, And Complex Financial Instruments

Section: Chapter Questions

Problem 25RQSC

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Question

Identify which one of the following statement is not correct?

The credit limit under the facility of cash credit is sanctioned against the security of materials for sale of a business man by the bank

The credit limit under the facility of cash credit is sanctioned against the guarantee provided by the government

The credit limit under the facility of cash credit is sanctioned against the goods in show room of the borrower by the bank

The credit limit under the facility of cash credit is sanctioned against the security of certain tangible assets of the borrower by the bank

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