Accounts Receivable May Be Used as a Source of Financing

question 77

Multiple Choice

Accounts receivable may be used as a source of financing by

• A) pledging the receivables as loan collateral.
• B) factoring the receivables to a finance company.
• C) selling securities backed by the receivables.
• D) all of the other answers are correct

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Definitions:

Actual Cost

The final, real amount spent on completing a specific task, project, or acquisition, as opposed to estimated or budgeted costs.

Cost Performance Index

A measure in project management that calculates the financial efficiency and cost control of a project by dividing the earned value by the actual cost.

Schedule Variance

A project management metric that measures the difference between the planned and actual progress of a project.

Earned Value

A project management technique that measures project performance and progress in an objective manner.