A Short-Term Loan Where the Borrower Pledges Its Accounts Receivable

question 79

Multiple Choice

A short-term loan where the borrower pledges its accounts receivable as security but is still responsible for any uncollectible account is referred to as

• A)a compensating balance.
• B)a letter of credit.
• C)an assignment.
• D)factoring.
• E)a repurchase.

---

Definitions:

Slope

The slope represents the rate of change between two variables on a graph, indicating how much one variable changes for a unit change in another variable.

Criterion Variable

The dependent variable in a study that is predicted or explained by the independent variable(s).

Predictor Variable

An independent variable in statistical models that is used to predict or explain changes in the dependent variable (response variable).

Nominal Variable

A nominal variable is a type of categorical variable for which there is no natural ordering among the categories.