A Company Sells Its Accounts Receivable to a Financial Institution

question 28

Multiple Choice

A company sells its accounts receivable to a financial institution that is in the business of buying accounts receivable at a discount. This sale is known as which of the following activities?

• A) pledging
• B) bartering
• C) factoring
• D) collateralizing

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Definitions:

Fine Movements

Precise, controlled movements that require small muscle coordination, such as writing with a pencil or threading a needle.

Prefrontal Cortex

The region of the brain located at the front of the frontal lobes, instrumental in decision-making, planning, and moderating social behavior.

Organizing Movements

The process of coordinating and directing actions or efforts towards achieving a specific goal or social change.

Cerebellum

A region of the brain that plays a vital role in motor control, balance, and coordination.