- CFA Exams
- CFA Level I Exam
- Topic 3. Corporate Issuers
- Learning Module 4. Working Capital and Liquidity
- Subject 3. Managing Working Capital and Liquidity
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.
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. |