The Incremental Investment in Receivables Under the Accounts Receivable Approach

Multiple Choice

The incremental investment in receivables under the accounts receivable approach is equal to:

A) (P - v) * Q*.
B) PQ*.
C) P * (Q*- Q) .
D) (P * Q) + [v *(Q* - Q) ].
E) (P * Q) *(Q* - Q) .