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:

Catharsis

A therapeutic process of releasing and thereby providing relief from strong or repressed emotions.

Repressed Feelings

Emotions that have been unconsciously blocked from conscious awareness due to being perceived as unacceptable or painful.

Electroencephalograph

A device used to record the electrical activity of the brain, often used in the diagnosis and monitoring of neurological conditions.

Brain Waves

Patterns of electrical activity in the brain, measurable by EEG, that reflect different states of consciousness or mental activities.