A Company Sells Its Accounts Receivable to a Financial Institution

question 28

Multiple Choice

A company sells its accounts receivable to a financial institution that is in the business of buying accounts receivable at a discount. This sale is known as which of the following activities?

• A) pledging
• B) bartering
• C) factoring
• D) collateralizing

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Definitions:

Intent

Intent signifies the purpose or goal that an individual or entity aims to achieve through their actions or decisions.

Cultural Norms

Shared expectations and rules that guide behavior of people within social groups, defining acceptable actions within a society or group.

Dietary Supplements

Products taken orally that contain dietary ingredients intended to supplement the diet, such as vitamins, minerals, herbs, or other botanicals.