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A Firm That Transfers Its Receivables in Exchange for Cash

Question 46

Multiple Choice

A firm that transfers its receivables in exchange for cash can


A) use its accounts receivable as collateral for a loan from a bank or other financial institution.
B) factor its accounts receivable to a bank or other financial institution in exchange for cash.
C) transfer the accounts receivable to a legally separate entity that issues debt securities to investors.
D) use all of the above.
E) use none of the above.

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