Accounts Receivable Financing

question 60

Multiple Choice

Accounts receivable financing

• A) allows small businesses to extend credit to its customers.
• B) delays the time a company receives money from its receivables.
• C) means borrowing money against your firm's account receivables.
• D) is not a legal practice.

Understanding the cash flow impacts of buying and selling assets, including the disposal of plant, property, and equipment.

Distinction between cash inflows and outflows in financing activities, and the understanding of their impact on cash flow.

Evaluating cash flow effects of transactions and events, including loss from disposal of assets or changes in account balances.

Ability to discern between operating, investing, and financing activities within various scenarios.

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Definitions:

Decrease In Sales

A situation where a company or a business experiences a reduction in the number of goods or services sold over a specific period.

Bad-News Message

A type of corporate communication designed to deliver unfavorable or negative information in a manner that maintains goodwill.

Alternative

An option or choice available in addition to the current situation or proposition.

Rejection

The act of not accepting, approving, or acknowledging someone or something.