If a company is experiencing cash flow difficulties it may opt to sell its receivables to a third party to generate cash.This is known as:
A)internal cash controls
B)pledging
C)factoring
D)cash managment

Question

Quizplus · Accepted Answer

Selling receivables to a third party is known as factoring, which is a method used by companies to generate cash when they experience cash flow difficulties. Internal cash controls pertain to the systems and procedures implemented by a company to safeguard its cash resources. Pledging refers to using assets as collateral to secure a loan. Cash management involves the management of a company's cash resources to maximize returns and minimize risks.

If a Company Is Experiencing Cash Flow Difficulties It May