The Process of Using Accounts Receivable as Collateral Is Called

question 100

Multiple Choice

The process of using accounts receivable as collateral is called ___________; the specific means by which the money is raised is called ___________.

• A) commercial paper; factoring
• B) factoring; commercial paper
• C) pledging accounts receivable; factoring
• D) equity financing; debt financing
• E) short-term credit; long-term credit

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Definitions:

United States Constitution

The supreme law of the United States, establishing the framework of the government and the relationship between the federal government and the states, citizens, and all people within the United States.

Legislative Branch

The branch of government responsible for making laws; in the U.S., it consists of the Congress, which is divided into the Senate and House of Representatives.

Statutes

Written laws passed by a legislative body at both the federal and state levels.

Shape Constancy

The perceptual skill that allows individuals to recognize the shape of an object as the same, even when its angle, distance, or lighting changes.