The Sale of Receivables by a Business

question 171

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 factor.
• D) can be a quick way to generate cash for operating needs.

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Definitions:

Employer

An individual or organization that hires and pays others to perform services or work as part of a team or company.

Family and Medical Leave Act

A U.S. federal law that provides employees with unpaid, job-protected leave for certain family and medical reasons.

Employers

Individuals or organizations that hire others to perform services or work in exchange for compensation.

Employees

Individuals who are hired by a business or organization to carry out tasks and duties in return for compensation.