The distinction between pledging accounts receivable and factoring accounts receivable. Introduction: Pledging accounts receivable: It is a practice that enables businesses to fund its operational activities by using its accounts receivables as security for loans. Factoring accounts receivable: It is a type of financial transaction in which accounts receivable of a business are sold at a discount to a third party. It is usually done in order to meet an immediate need of cash by the firm.

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Chapter 8, Problem 9DQ

Summary Introduction

To explain: The distinction between pledging accounts receivable and factoring accounts receivable.

Introduction:

Pledging accounts receivable:

It is a practice that enables businesses to fund its operational activities by using its accounts receivables as security for loans.

Factoring accounts receivable:

It is a type of financial transaction in which accounts receivable of a business are sold at a discount to a third party. It is usually done in order to meet an immediate need of cash by the firm.

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Answer 2

Question

Chapter 8, Problem 9DQ

Summary Introduction

To explain: The distinction between pledging accounts receivable and factoring accounts receivable.

Introduction:

Pledging accounts receivable:

It is a practice that enables businesses to fund its operational activities by using its accounts receivables as security for loans.

Factoring accounts receivable:

It is a type of financial transaction in which accounts receivable of a business are sold at a discount to a third party. It is usually done in order to meet an immediate need of cash by the firm.

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Answer 3

Question

Chapter 8, Problem 9DQ

Summary Introduction

To explain: The distinction between pledging accounts receivable and factoring accounts receivable.

Introduction:

Pledging accounts receivable:

It is a practice that enables businesses to fund its operational activities by using its accounts receivables as security for loans.

Factoring accounts receivable:

It is a type of financial transaction in which accounts receivable of a business are sold at a discount to a third party. It is usually done in order to meet an immediate need of cash by the firm.

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Answer 4

Question

Chapter 8, Problem 9DQ

Summary Introduction

To explain: The distinction between pledging accounts receivable and factoring accounts receivable.

Introduction:

Pledging accounts receivable:

It is a practice that enables businesses to fund its operational activities by using its accounts receivables as security for loans.

Factoring accounts receivable:

It is a type of financial transaction in which accounts receivable of a business are sold at a discount to a third party. It is usually done in order to meet an immediate need of cash by the firm.

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Answer 5

Chapter 8, Problem 9DQ

Summary Introduction

To explain: The distinction between pledging accounts receivable and factoring accounts receivable.

Introduction:

Pledging accounts receivable:

It is a practice that enables businesses to fund its operational activities by using its accounts receivables as security for loans.

Factoring accounts receivable:

It is a type of financial transaction in which accounts receivable of a business are sold at a discount to a third party. It is usually done in order to meet an immediate need of cash by the firm.

Answer 6

Chapter 8, Problem 9DQ

Summary Introduction

To explain: The distinction between pledging accounts receivable and factoring accounts receivable.

Introduction:

Pledging accounts receivable:

It is a practice that enables businesses to fund its operational activities by using its accounts receivables as security for loans.

Factoring accounts receivable:

It is a type of financial transaction in which accounts receivable of a business are sold at a discount to a third party. It is usually done in order to meet an immediate need of cash by the firm.

Answer 7

Chapter 8, Problem 9DQ

Summary Introduction

To explain: The distinction between pledging accounts receivable and factoring accounts receivable.

Introduction:

Pledging accounts receivable:

It is a practice that enables businesses to fund its operational activities by using its accounts receivables as security for loans.

Factoring accounts receivable:

It is a type of financial transaction in which accounts receivable of a business are sold at a discount to a third party. It is usually done in order to meet an immediate need of cash by the firm.

Answer 8

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Answer 11

Ch. 8 - Under what circumstances would it be advisable to...Ch. 8 - Discuss the relative use of credit between large...Ch. 8 - Prob. 3DQ Ch. 8 - Prob. 4DQ Ch. 8 - Prob. 5DQ Ch. 8 - Prob. 6DQ Ch. 8 - Prob. 7DQ Ch. 8 - Prob. 8DQ Ch. 8 - Prob. 9DQ Ch. 8 - Prob. 10DQ

Solution Summary: The author explains the difference between pledging and factoring accounts receivable.

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