The purpose of the restrictive debt covenant that prohibits the sale of accounts receivable is to ________.

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The purpose of the restrictive debt covenant that prohibits the sale of accounts receivable is to limit the realization of current assets to cash. This is because selling accounts receivable allows a company to receive cash in the short-term, but it can also create long-term financial obligations that can affect the company's ability to repay its debt. By prohibiting the sale of accounts receivable, lenders can be assured that the company will not be using this method to generate more cash flow, and they can have more confidence in the company's ability to manage its debt obligations.

The Purpose of the Restrictive Debt Covenant That Prohibits the Sale