Which of the Following Can a Business Use a Credit

Multiple Choice

Which of the following can a business use a credit note to advantage rather than increasing accounts receivable?

A) As security to take out a loan but cannot use accounts receivable in this way.
B) Against the company's own accounts payable as most suppliers will accept a third party note in lieu of cash but not accounts receivable.
C) To deposit the payment in a savings account at par but receive no interest on the amount until the note is collected.
D) To receive cash at the bank at a discount from its face value.
E) To avoid collections as, on the date the note is due, the bank will automatically transfer funds from the account of the borrower into the note holder's account.