BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It is the inventory that can be easily sold
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Account receivable provide a good basis for a loan
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Account receivable can be used to secure longer time financing
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Detailed explanation-1: -Loans receivable is an account in the general ledger of a lender, containing the current balance of all loans owed to it by borrowers. This is the primary asset account of a lender.
Detailed explanation-2: -Accounts receivable financing allows companies to receive early payment on their outstanding invoices. A company using accounts receivable financing commits some, or all, of its outstanding invoices to a funder for early payment, in return for a fee.
Detailed explanation-3: -Accounts receivable is any amount of money your customers owe you for goods or services they purchased from you in the past. This money is typically collected after a few weeks and is recorded as an asset on your company’s balance sheet. You use accounts receivable as part of accrual basis accounting.
Detailed explanation-4: -Accounts receivable (AR) financing is a type of financing arrangement in which a company receives financing capital related to a portion of its accounts receivable. Accounts receivable financing agreements can be structured in multiple ways usually with the basis as either an asset sale or a loan.