Examlex

Solved

When Accounts Receivable Are Pledged: Money Is Advanced to the Borrower

question 2

True/False

When accounts receivable are pledged: money is advanced to the borrower as a loan against accounts receivable; accounts receivable balances remain on the balance sheet; the customer payment is made to the firm, which then submits the payment to the bank; and interest is charged on the loan.


Definitions:

Sugar

A sweet-tasting, soluble carbohydrate used widely as a sweetener in food and beverages, derived from various sources such as sugarcane and sugar beet.

Production Quota

A limit set on the amount of goods that can be produced, often used by governments to control supply and stabilize market prices.

Support Price

A price level set by governments in order to stabilize or increase prices of specific goods by buying up the supply or providing subsidies.

Demand Curve

A graphical representation showing the relationship between the price of a good and the amount of that good consumers are willing to buy.

Related Questions