The Sale of Receivables by a Business

question 155

Multiple Choice

The sale of receivables by a business

• A)indicates that the business is in financial difficulty.
• B)is generally the major revenue item on its income statement.
• C)is an indication that the business is owned by a captive finance company.
• D)can be a quick way to generate cash for operating needs.

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Definitions:

Fulfillment Center

A large warehouse facility used for receiving, processing, and fulfilling customer orders quickly and efficiently.

Distribution Center

A specialized facility that serves as a strategic storage and shipping location for products, aiming to streamline product distribution to retailers or directly to consumers.

Advanced Shipping Notice

A notification of pending deliveries, typically sent electronically to a recipient detailing information about a shipment before it arrives, including contents, packaging, and carrier details.

Universal Product Code

A barcode symbol that is widely used in retail for tracking trade items in stores, containing a unique identifier for each product.