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A blanket filing may be used on a line-of-credit financing so that the security agreement applies to only some of the current assets, no non-real estate assets, and, if stipulated, to property divested in the future as well.

          A blanket filing may be used on a line-of-credit financing so that the security agreement applies to only some of the current assets, no non-real estate assets, and, if stipulated, to property divested in the future as well.
        

Added by Susan R.

Horngren’s Cost Accounting
Horngren’s Cost Accounting
Srikant M. Datar, Madhav V. Rajan 16th Edition
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A blanket filing may be used on a line-of-credit financing so that the security agreement applies to only some of the current assets, no non-real estate assets, and, if stipulated, to property divested in the future as well.
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Transcript

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00:01 Land acquired with the intention of being resold in the future is typically listed on the balance sheet as an investment, your third choice.
00:12 Land acquired for the purpose of resale in the future is treated as an investment on the balance sheet.
00:17 It is categorized as a non -current asset or a long -term investment.
00:21 Because the company's intention is to hold it for capital appreciation and eventual resale rather than using it in its regular operations.
00:53 It's not a fixed asset because fixed assets are long -term tangible assets that a company holds for use in its operations...
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