If a company sells its receivable to another party to raise funds, it is known as

Related MCQs

• Kanji Company had sales last year of Rs. 265 million, including cash sales of Rs. 25 million. If its average collection period was 36 days, its ending accounts receivable balance is closest to . (Assume a 365-day year.)
• A company may raise funds by issue of shares or -------------
• If the following are balance sheet changes: Rs. 5,005 decrease in accounts receivable Rs. 7,000 decrease in cash Rs. 12,012 decrease in notes payable Rs. 10,001 increase in accounts payable a "use" of funds would be the:
• IPO refers to ____________; the first time a company comes to public to raise money.
• Consider the below mentioned statements: 1. A debt-equity ratio of 2:1 indicates that for every 1 unit of equity, the company can raise 2 units of debt. 2. The cost of floating a debt is greater than the cost of floating an equity issue. State True or False:
• _________Policy refers to the procedure follow to collect accounts receivable after the expiry of the credit period
• 80% of sales of 10,00,000 of a firm are on credit. It has a Receivable Turnover of 8. What is the Average collection period (360 days a year) and Average Debtors of the firm?
• Find the present value of Rs. 1,000 receivable 6 years hence if the rate of discount is 10 percent.
• An increase in the firm's receivable turnover ratio means that:
• ___________________ of a firm refers to the composition of its long-term funds and its capital structure.