Describe and compare the basic features of the following methods of using accounts receivable to obtain short-term
Question:
(a) Pledging accounts receivable, and
(b) Factoring accounts receivable. Be sure to mention the institutions that offer each of them.
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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a A pledge of accounts receivable is the use of a firms receivables to secure a shortterm loan The l...View the full answer
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Related Book For 
Principles Of Managerial Finance
ISBN: 978-0136119463
13th Edition
Authors: Lawrence J. Gitman, Chad J. Zutter
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