Accounts Receivable Financing

question 11

Multiple Choice

Accounts receivable financing

• A) allows small businesses to extend credit to customers.
• B) delays the time a company receives money from receivables.
• C) means borrowing money against the firm's accounts receivable.
• D) is not a suggested practice due to the cost.

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Definitions:

Developed

Refers to a state or condition that has been advanced or matured over time, often used to describe countries with high levels of industrialization, infrastructure, and standard of living.

Intuitive Thought

A type of thinking process that involves knowing or understanding something without the need for conscious reasoning.

Inductive Reasoning

A method of reasoning in which specific observations or instances are used to make broader generalizations or conclusions.

Concrete Reasoning

The ability to understand and reason about tangible, physical objects and events, rather than abstract concepts.