Firms That Are Temporarily Short of Cash and Unable to Borrow

Multiple Choice

Firms that are temporarily short of cash and unable to borrow from usual sources can convert accounts receivable into cash by selling accounts receivable to a bank or financing company.This is called

A) assigning accounts receivable.
B) pledging accounts receivable.
C) factoring accounts receivable.
D) transferring accounts receivable.
E) none of the above.