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Accounts receivable financing is the extension of a

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ReferencesMultiple ChoiceDifficulty: Medium
Accounts receivable financing is the extension of a loan to a business against the security of itsreceivables. Which of the following statements relating to accounts receivable financing isnotcorrect?The main suppliers of accounts receivable financing are finance companies.Generally, only some of the receivables on a company's books will be acceptable assecurity.The lender will takeover the management of the borrower's receivables.The borrower remains liable for any bad debts.Accounts receivable financing is short-term finance, where accounts receivables serve as securityfor the loan. The lender only provides finance and the borrower continues to issue invoices andmanage its receivables in the usual way.
22.Award:0 out of 1.00 pointWhich of the following statements in relation to factoring isnotcorrect?
23.Award:0 out of 1.00 pointReferencesMultiple ChoiceDifficulty: EasyWhich of the following statements about commercial bills isnotcorrect?The face value of a commercial bill is payable at a specified future date.A commercial bill pays no interest.A commercial bill is a discount security.Commercial bills are an important source of long-term finance for large and medium-sizedfirms.Bills provide short-term finance.
ReferencesMultiple ChoiceDifficulty: Easy

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Term
Two
Professor
NoProfessor
Tags
Promissory note, Negotiable instrument, Overdraft, Credit rating

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