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The Selling of Accounts Receivable as a Means of Quickly

question 59

Multiple Choice

The selling of accounts receivable as a means of quickly raising cash, minimising debt collecting expenses and minimising bad debt losses is known as:

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Definitions:

Liabilities

are present financial obligations arising from past events, the settlement of which is expected to result in an outflow of resources embodying economic benefits.

Tax Rate

The percentage at which an individual or corporation is taxed.

Marketable Securities

These are liquid financial instruments that can be quickly converted into cash at market value, such as stocks, bonds, or Treasury bills.

Share Capital

The amount of money raised by a company through the issuance of shares to its shareholders, representing ownership in the company.

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