John bought $40 000 worth of receivables for 60 percent of that sum ($24 000). He will profit if the money he eventually collects exceeds the amount he paid for the receivables. John is involved in
pledging accounts receivable.
leveraging goods-in-process inventory.
collateralizing inventory.
factoring accounts receivable.
hedging.

Question

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The Answer of John bought $40 000 worth of receivables for 60 percent of that sum ($24 000). He will profit if the money he eventually collects exceeds the amount he paid for the receivables. John is involved in
pledging accounts receivable.
leveraging goods-in-process inventory.
collateralizing inventory.
factoring accounts receivable.
hedging.

John Bought $40 000 Worth of Receivables for 60 Percent