Question 1

In the context of financial tools, a business can quickly generate cash in the short run by selling accounts receivable at a discount to another company.This is a technique known as ________.

Accepted Answer

A)  crowd funding
B)  asset leasing
C)  factoring
D)  leasingE) A) and B)
F) A) and C)

Question 2

In the context of proper accounting practices, identify a major difference between cash-based and accrual-based accounting systems.

Accepted Answer

A)  Cash-based systems must be used by large businesses, whereas accrual-based systems must only be used by the smallest businesses.
B)  Cash-based systems recognize revenue as it is generated, whereas accrual-based systems record revenue only when it occurs.
C)  Cash-based systems are generally used with periodic inventory counting systems, whereas accrual-based systems are used primarily with perpetual inventory counting systems.
D)  Cash-based systems are mostly used by publicly held corporations, whereas accrual-based systems are mostly used by privately held corporations.E) All of the above
F) None of the above

Exam 7: Financing and Accounting

In the context of proper accounting practices, identify a major difference between cash-based and accrual-based accounting systems.

Correct Answer
verified

In the context of financial tools, a business can quickly generate cash in the short run by selling accounts receivable at a discount to another company.This is a technique known as ________.

Correct Answer
verified

Exam 7: Financing and Accounting

In the context of proper accounting practices, identify a major difference between cash-based and accrual-based accounting systems.

Correct AnswerverifiedShow Answer

In the context of financial tools, a business can quickly generate cash in the short run by selling accounts receivable at a discount to another company.This is a technique known as ________.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified