Pledging Accounts Receivable as a Source of Short-Term Credit

question 131

Multiple Choice

Pledging accounts receivable as a source of short-term credit

• A) is a type of loan secured by accounts receivable.
• B) is a form of spontaneous credit.
• C) involves the outright sale of accounts receivable to a financial institution.
• D) is an inexpensive but risky source of short-term financing.

---

Definitions:

Sample Size

The number of observations or data points collected for the purpose of statistical analysis.

One-Tail P-Value

The probability, in hypothesis testing, of observing a test statistic as extreme as, or more extreme than, the value observed under the assumption that the null hypothesis is true, in one direction.

Two-Tail Test

A statistical test in which the critical area of a distribution is two-sided and tests whether a sample is greater than or less than a certain range of values.

Critical Values

Specific points on the scale of a statistical distribution that are associated with a specified significance level, used for hypothesis testing.