When the Bank Advances a Large Percentage of the Invoice

question 20

Multiple Choice

When the bank advances a large percentage of the invoice price of goods and is paid on a pro-rata basis when inventory is sold this is called:

• A) a trust receipt.
• B) a factoring arrangement.
• C) an accounts payable loan.
• D) a sale-leaseback arrangement.

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Definitions:

Agranular Leukocytes

White blood cells without granules in their cytoplasm, which play a role in the immune system, including lymphocytes and monocytes.

Neutrophils

A type of white blood cell that plays a key role in the immune system by engulfing and destroying pathogens and debris.

Basophils

A type of white blood cell involved in immune responses, particularly known for releasing histamine and playing a role in allergic reactions.

Eosinophils

A type of white blood cell involved in the body's immune response, particularly known for their role in fighting parasitic infections and contributing to allergic reactions.