Which of the Following Can a Business Use a Credit

question 32

Multiple Choice

Which of the following can a business use a credit note to advantage rather than increasing accounts receivable?

• A) As security to take out a loan but cannot use accounts receivable in this way.
• B) Against the company's own accounts payable as most suppliers will accept a third party note in lieu of cash but not accounts receivable.
• C) To deposit the payment in a savings account at par but receive no interest on the amount until the note is collected.
• D) To receive cash at the bank at a discount from its face value.
• E) To avoid collections as, on the date the note is due, the bank will automatically transfer funds from the account of the borrower into the note holder's account.

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Definitions:

Latent Learning

Learning that occurs without immediate reinforcement and is not demonstrated until there is an incentive to perform.

Law of Effect

A principle in psychology stating that responses closely followed by satisfaction will become firmly attached to the situation and therefore more likely to recur in similar situations.

Spontaneous Recovery

The reappearance of a conditioned response after a period of lessened response.

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, which are used to either increase or decrease the likelihood of a behavior repeating.