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 management.

Question

Quizplus · Accepted Answer

Factoring is the selling of accounts receivables to a third party at a discount in exchange for immediate cash. This can help generate cash flow for a company facing financial difficulties. Internal cash controls refer to a company's own procedures for managing and monitoring its cash flows. Pledging refers to using an asset as collateral for a loan. Cash management refers to the management of a company's cash flows and investments to optimize its liquidity and financial performance.

If a Company Is Experiencing Cash Flow Difficulties,it May Opt