CFA Practice Question

There are 120 practice questions for this study session.

CFA Practice Question

A firm that needs to raise cash and also reduce the level of its accounts receivable would most likely benefit from ______.
A. obtaining an unsecured short-term loan or applying for a committed line of credit
B. factoring its receivables
C. securing any short-term credit with a blanket inventory lien
Explanation: A: This will not reduce the level of accounts receivable.
C: This will not reduce the level of accounts receivable.

User Contributed Comments 2

User Comment
ksnider what is factoring receivables??
hoyleng ksnider : factoring receivables means selling your receivable to financial instituition.
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