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

Question

Quizplus · Accepted Answer

Pledging uses receivables as collateral for a loan, while factoring involves selling the receivables to a third party.

In Financing Accounts Receivable,pledging Uses Receivables _______ While Factoring Uses