Pledging account receivables: In a pledging of account receivable arrangement, the lender of loan analyze the invoices of credit sales of the borrowing firm and decides which credit accounts that will be suitable for the lender to accept for collateral for the loan. The lender decides credit account for collateral on the basis of standards. Factoring account receivables: Factoring is arrangement where the firm’s account receivables are sold to the factor and customer are directed to pay the amount directly to factor. The factor bears the risk related to account receivable of the firm. To identify: The difference between pledging of account receivable to secure a loan and factoring of account receivable and types of secured financing that firm can use to cover shortfalls.

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Answer 1

Question

Chapter 20, Problem 10CT

Summary Introduction

Pledging account receivables: In a pledging of account receivable arrangement, the lender of loan analyze the invoices of credit sales of the borrowing firm and decides which credit accounts that will be suitable for the lender to accept for collateral for the loan. The lender decides credit account for collateral on the basis of standards.

Factoring account receivables: Factoring is arrangement where the firm’s account receivables are sold to the factor and customer are directed to pay the amount directly to factor. The factor bears the risk related to account receivable of the firm.

To identify:

The difference between pledging of account receivable to secure a loan and factoring of account receivable and types of secured financing that firm can use to cover shortfalls.

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Answer 2

Question

Chapter 20, Problem 10CT

Summary Introduction

Pledging account receivables: In a pledging of account receivable arrangement, the lender of loan analyze the invoices of credit sales of the borrowing firm and decides which credit accounts that will be suitable for the lender to accept for collateral for the loan. The lender decides credit account for collateral on the basis of standards.

Factoring account receivables: Factoring is arrangement where the firm’s account receivables are sold to the factor and customer are directed to pay the amount directly to factor. The factor bears the risk related to account receivable of the firm.

To identify:

The difference between pledging of account receivable to secure a loan and factoring of account receivable and types of secured financing that firm can use to cover shortfalls.

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Answer 3

Question

Chapter 20, Problem 10CT

Summary Introduction

Pledging account receivables: In a pledging of account receivable arrangement, the lender of loan analyze the invoices of credit sales of the borrowing firm and decides which credit accounts that will be suitable for the lender to accept for collateral for the loan. The lender decides credit account for collateral on the basis of standards.

Factoring account receivables: Factoring is arrangement where the firm’s account receivables are sold to the factor and customer are directed to pay the amount directly to factor. The factor bears the risk related to account receivable of the firm.

To identify:

The difference between pledging of account receivable to secure a loan and factoring of account receivable and types of secured financing that firm can use to cover shortfalls.

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Answer 4

Question

Chapter 20, Problem 10CT

Summary Introduction

Pledging account receivables: In a pledging of account receivable arrangement, the lender of loan analyze the invoices of credit sales of the borrowing firm and decides which credit accounts that will be suitable for the lender to accept for collateral for the loan. The lender decides credit account for collateral on the basis of standards.

Factoring account receivables: Factoring is arrangement where the firm’s account receivables are sold to the factor and customer are directed to pay the amount directly to factor. The factor bears the risk related to account receivable of the firm.

To identify:

The difference between pledging of account receivable to secure a loan and factoring of account receivable and types of secured financing that firm can use to cover shortfalls.

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Answer 5

Chapter 20, Problem 10CT

Summary Introduction

Pledging account receivables: In a pledging of account receivable arrangement, the lender of loan analyze the invoices of credit sales of the borrowing firm and decides which credit accounts that will be suitable for the lender to accept for collateral for the loan. The lender decides credit account for collateral on the basis of standards.

Factoring account receivables: Factoring is arrangement where the firm’s account receivables are sold to the factor and customer are directed to pay the amount directly to factor. The factor bears the risk related to account receivable of the firm.

To identify:

The difference between pledging of account receivable to secure a loan and factoring of account receivable and types of secured financing that firm can use to cover shortfalls.

Answer 6

Chapter 20, Problem 10CT

Summary Introduction

Pledging account receivables: In a pledging of account receivable arrangement, the lender of loan analyze the invoices of credit sales of the borrowing firm and decides which credit accounts that will be suitable for the lender to accept for collateral for the loan. The lender decides credit account for collateral on the basis of standards.

Factoring account receivables: Factoring is arrangement where the firm’s account receivables are sold to the factor and customer are directed to pay the amount directly to factor. The factor bears the risk related to account receivable of the firm.

To identify:

The difference between pledging of account receivable to secure a loan and factoring of account receivable and types of secured financing that firm can use to cover shortfalls.

Answer 7

Chapter 20, Problem 10CT

Summary Introduction

Pledging account receivables: In a pledging of account receivable arrangement, the lender of loan analyze the invoices of credit sales of the borrowing firm and decides which credit accounts that will be suitable for the lender to accept for collateral for the loan. The lender decides credit account for collateral on the basis of standards.

Factoring account receivables: Factoring is arrangement where the firm’s account receivables are sold to the factor and customer are directed to pay the amount directly to factor. The factor bears the risk related to account receivable of the firm.

To identify:

The difference between pledging of account receivable to secure a loan and factoring of account receivable and types of secured financing that firm can use to cover shortfalls.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 20 - Prob. 1CC Ch. 20 - 2. What is the effect of seasonalities on...Ch. 20 - Prob. 3CC Ch. 20 - Prob. 4CC Ch. 20 - Prob. 5CC Ch. 20 - Prob. 6CC Ch. 20 - Prob. 7CC Ch. 20 - Prob. 8CC Ch. 20 - Prob. 9CC Ch. 20 - Prob. 10CC

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