If a company sells its accounts receivable to another party to raise funds, it is known as
Selling accounts receivable to another party to raise funds is factoring. Pledging instead uses receivables as security for borrowing without selling them, while hedging…
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If a company sells its accounts receivable to another party to raise funds, it is known as
Answer and explanation
Correct answer B
Selling accounts receivable to another party to raise funds is factoring. Pledging instead uses receivables as security for borrowing without selling them, while hedging addresses risk.
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West Bengal SET (WB SET)