Questions: Multiple Select Question Select all that apply Financing receivables can be done by (Select all that apply.) - transferee approach. - contra receivables approach. - secured borrowing. - sale of receivables.

Multiple Select Question

Select all that apply Financing receivables can be done by (Select all that apply.)
- transferee approach.
- contra receivables approach.
- secured borrowing.
- sale of receivables.

Transcript text: Multiple Select Question Select all that apply Financing receivables can be done by (Select all that apply.) transferee approach. contra receivables approach. secured borrowing. sale of receivables.

Solution

Answer

The answers are:

secured borrowing.
sale of receivables.

Explanation

Option 1: transferee approach

This is not a standard term used in the context of financing receivables. Therefore, it is not applicable.

Option 2: contra receivables approach

This is also not a recognized method for financing receivables. Contra receivables typically refer to accounts that offset receivables, such as allowances for doubtful accounts, but not a method of financing.

Option 3: secured borrowing

This is a common method of financing receivables. In secured borrowing, the receivables are used as collateral for a loan. The company retains ownership of the receivables but receives cash upfront from the lender.

Option 4: sale of receivables

This is another common method of financing receivables. In this approach, the company sells its receivables to a third party (often a factoring company) at a discount. The third party then collects the receivables from the customers.

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