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Receivable Financing

Total questions: 13

Worksheet time: 5mins

Name
Class
Date
1.

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

a)

Receivable financing

b)

Receivable flexibility

c)

Financial receipt

d)

Pledging

2.

Which of the following is not a form of receivable financing

a)

pledging

b)

assignment

c)

factoring

d)

flexing

3.

Pledging of accounts receivable means

a)

transferring the rights of the receivable to another

b)

sale of accounts receivable

c)

giving the receivable as collateral for a loan

d)

none of these

4.

Factoring of accounts receivable means

a)

transferring the rights of the receivable to another

b)

sale of accounts receivable

c)

giving the receivable as collateral for a loan

d)

none of these

5.

Assignment of accounts receivable means

a)

transferring the rights of the receivable to another

b)

sale of accounts receivable

c)

giving the receivable as collateral for a loan

d)

none of these

6.

Factoring the receivables has two forms:

a)

casual factoring

b)

factoring as continuing agreement

c)

without recourse

d)

non notification

7.

"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

a)

Pledging

b)

Factoring

c)

Assignment

d)

Discounting

8.

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

a)

with recourse

b)

without recourse

c)

notification

d)

non-notification

9.

When collecting assigned receivables, the entity makes an entry to

a)

debit Accounts receivable-assigned

b)

credit Accounts receivable-assigned

c)

credit Note payable

d)

credit Cash

10.

If the loan is discounted, it means that

a)

the interest is paid by the bank

b)

the interest is paid by the borrower

c)

the interest is deducted in advance

d)

the interest is waived.

11.

In assignment of the accounts receivable, the borrower is called

a)

assignor

b)

assignee

c)

factor

d)

pledgor

12.

Pledging is different from assignment because

a)

In pledging, all accounts are sold to the bank

b)

In pledging, specific accounts serve as collateral for the loan

c)

In pledging, all accounts serve as collateral for the loan

d)

none of these

13.

It is a card with a predetermined limit from the issuer to purchase goods and services.

a)

debit card

b)

credit card

c)

identification card

d)

SSS card