The sale of receivables by a business
A)indicates that the business is in financial difficulty.
B)is generally the major revenue item on its income statement.
C)is an indication that the business is owned by a captive finance company.
D)can be a quick way to generate cash for operating needs.

Question

Quizplus · Accepted Answer

Selling receivables is a common practice for businesses to quickly generate cash to meet immediate operating needs, rather than an indication of financial difficulty or ownership by a captive finance company.

The Sale of Receivables by a Business