Accounts Receivable May Be Used as a Source of Financing

question 23

Multiple Choice

Accounts receivable may be used as a source of financing by:

• A) collecting the receivables.
• B) writing off the receivables as bad debt expense.
• C) buying securities backed by the receivables.
• D) factoring the receivables to a finance company.

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Definitions:

Stability In Employment

The assurance of continuing job security and consistent work conditions over time, contributing to a stable workforce.

Mainstream Economic Perspective

Refers to the dominant school of thought in economics that emphasizes rational choice, market equilibrium, and the beneficial role of free markets in allocating resources efficiently.

Voice

A term in industrial relations referring to the ability of employees to express their opinions, grievances, or suggestions, either individually or collectively, within the workplace.

Mainstream Economics

The most widely accepted and practiced theories and models in economics, focusing on market equilibrium, the rational behavior of economic agents, and the efficiency of markets.