Which of the Following Creates a Secured Short-Term Loan with Accounts

question 11

Multiple Choice

Which of the following creates a secured short-term loan with accounts receivable?

• A) lines of credit
• B) commercial paper
• C) pledge of accounts receivable
• D) factoring of accounts receivable

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Definitions:

Net Operating Income

The profit generated from a company's core business operations, excluding deductions of interest and taxes.

Revenue and Spending Variance

The difference between actual and budgeted figures for both income and expenditures, respectively.

Flexible Budget

A budget that varies with levels of activity or output, allowing organizations to more accurately forecast costs and revenues over various levels of production.

Occupancy Expenses

Expenses related to occupying a space, including rent, utilities, and property insurance.