Selling the right to collect accounts receivable to an entity outside your business is called:
A)pledging receivable.
B)factoring.
C)EOQ.
D)JIT inventory.

Question

Quizplus · Accepted Answer

Selling the right to collect accounts receivable to an entity outside your business is known as factoring. Pledging receivable refers to using accounts receivable as collateral for a loan. EOQ (Economic Order Quantity) and JIT (Just-in-Time) inventory are both related to inventory management and are not relevant to this question.

Selling the Right to Collect Accounts Receivable to an Entity