menu
Sign up

In Financing Accounts Receivable, Pledging Uses Receivables _______ While Factoring

Question 4
Multiple Choice

In financing accounts receivable, pledging uses receivables _______ while factoring uses receivables _________. A) as collateral; to purchase B) as collateral; to sell C) to sell; as collateral D) to sell; to purchase

Related questions
Q 5
The factoring of accounts receivable consists of: A) selling accounts receivable at a profit. B) pledging accounts receivable as collateral for a loan. C) selling accounts receivable to raise working capital. D) buying accounts receivable from a factor.
Q 6
LIBOR is: A) a resource used in production. B) an interest rate paid on deposits of US dollars in the London market. C) an interest rate paid by European firms when they borrow Eurodollar deposits from Canadian banks. D) the interest rate paid by the British government on its long-term bonds.
Q 7
A large manufacturing firm has been selling on a 3/10, net 30 basis. The firm changes its credit terms to 2/20, net 90. What change might be expected on the balance sheets of its customers? A) Decreased receivables and increased bank loans. B) Increased receivables and increased bank loans. C) Increased payables and decreased bank loans. D) Increased payables and increased bank loans.
logo
© 2020-2021 Cozyplus FZ LLC. All rights reserved