Lending Institutions May Offer a Borrower a Percentage of the Value

question 103

Multiple Choice

Lending institutions may offer a borrower a percentage of the value of the borrower's accounts receivable so the borrowing firm can continue to operate while it waits to collect on its credit sales. This process is called __________

• A) establishing a line of credit.
• B) inventory valuation.
• C) pledging.
• D) revolving credit.

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