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.

---

Definitions:

Psychopathology

The study of mental disorders, including their symptoms, causes, and treatment, focusing on abnormal behavior and psychological functioning.

Aversive Feelings

Negative feelings that often lead to avoidance behavior, these can include emotions such as disgust, fear, or hatred towards specific stimuli or situations.

Habituation

The process of becoming accustomed to a stimulus or environment over time, leading to a decrease in responsiveness.

Fear-Producing Stimuli

Objects, situations, or cues that elicit a fear response or anxiety in individuals, relevant in studies of phobias and anxiety disorders.