If a Company Is Experiencing Cash Flow Difficulties It May

question 44

Multiple Choice

If a company is experiencing cash flow difficulties it may opt to sell its receivables to a third party to generate cash.This is known as:

• A)internal cash controls
• B)pledging
• C)factoring
• D)cash managment

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Definitions:

National Debt

This is the total amount of money that a country's government has borrowed and still owes.

Treasury Bills

Short-term government securities with maturities of one year or less, used by governments to raise funds and regulate money supply.

Budget

An estimation of revenue and expenses over a specified future period of time, often structured as a financial plan.

Annually Balanced Budget

A fiscal policy approach where government revenues and expenditures are equal within a one-year period.