​MNCs Can Use ____ to Sell Their Existing Accounts Receivable

question 28

Multiple Choice

​MNCs can use ____ to sell their existing accounts receivable as a means of obtaining cash.

• A) ​factoring
• B) ​a bill of lading
• C) ​a banker's acceptance
• D) ​a letter of credit

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Definitions:

Voucher Payment

Voucher payment involves the use of a voucher system where approval documents are prepared and used as the basis for making payments to vendors.

Net Method

An accounting practice where discounts for early payment are assumed to be taken and purchase or sale transactions are recorded at the net, discounted amount.

Periodic Inventory Method

An accounting method where the inventory is physically counted at specific intervals and the cost of goods sold is calculated afterwards.

Merchandise Purchase

Transactions related to buying goods for sale, typically finished goods, in a retail or wholesale setting.