Receivable Financing

The financial flexibility of the entity to raise money out of its receivables

• Receivable financing

• Receivable flexibility

• Financial receipt

• Pledging

Which of the following is not a form of receivable financing

• pledging

• assignment

• factoring

• flexing

Pledging of accounts receivable means

• transferring the rights of the receivable to another

• sale of accounts receivable

• giving the receivable as collateral for a loan

• none of these

Factoring of accounts receivable means

• transferring the rights of the receivable to another

• sale of accounts receivable

• giving the receivable as collateral for a loan

• none of these

Assignment of accounts receivable means

• transferring the rights of the receivable to another

• sale of accounts receivable

• giving the receivable as collateral for a loan

• none of these

Factoring the receivables has two forms:

• casual factoring

• factoring as continuing agreement

• without recourse

• non notification

"The note payable to BDO matures on January 15, 2023 and is secured by accounts receivable amounting to P5,000,000".

This statement can be found in the notes if

• Pledging

• Factoring

• Assignment

• Discounting

When accounts are assigned on a _________ basis, the customers are not informed that their accounts have been assigned.

• with recourse

• without recourse

• notification

• non-notification

When collecting assigned receivables, the entity makes an entry to

• debit Accounts receivable-assigned

• credit Accounts receivable-assigned

• credit Note payable

• credit Cash

If the loan is discounted, it means that

• the interest is paid by the bank

• the interest is paid by the borrower

• the interest is deducted in advance

• the interest is waived.