In Financing Accounts Receivable,pledging Uses Receivables _______ While Factoring Uses

question 35

Multiple Choice

In financing accounts receivable,pledging uses receivables _______ while factoring uses receivables _________.

• A) as collateral; to purchase
• B) as collateral; to sell
• C) to sell; as collateral
• D) to sell; to purchase

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Definitions:

Reported

Information or data that has been formally communicated or disclosed, often referring to financial performance or events.

Debt Ratio

A financial ratio that measures the extent of a company’s leverage, calculated by dividing its total debt by its total assets.

Total Liabilities

The aggregate of all debts and financial obligations owed by an entity to outside parties at a given point in time.