Nick's Wholesale Office Supplies prefers to handle its accounts receivable itself,but it also needs to use them to facilitate short-term borrowing.What can Nick's do?

Question

Quizplus · Accepted Answer

Pledging accounts receivable as collateral allows Nick's Wholesale Office Supplies to use them for short-term borrowing while still retaining control over them. This way, they can still handle the accounts receivable themselves, which is their preferred method. The other options (A, B, D, E) either do not provide a viable solution or require giving up control over the accounts receivable.

Nick's Wholesale Office Supplies Prefers to Handle Its Accounts Receivable