Multiple Choice
Pledging accounts receivable has all of the following characteristics except:
A) money is advanced to the borrower as a loan against accounts receivable
B) accounts receivable balances remain on the balance sheet
C) the customer payment is made to the firm, which then submits the payment to the bank
D) all of the above are characteristics of pledging
Correct Answer:
Verified
Correct Answer:
Verified
Q30: Permanent current assets reflect the minimum investment
Q71: Short-term financing offers greater flexibility than long-term
Q113: Inventory loans are less expensive than unsecured
Q136: The effective annual interest rate on a
Q138: The largest providers of short-term financing are:<br>A)commercial
Q139: Higher financing cost and lower risk of
Q140: Which of the following is not a
Q141: The cost of trade credit involving cash
Q143: If net working capital is negative:<br>A)current assets
Q154: Stocks and bonds are rarely used as