Asked by
Nicole Mouton
on Nov 14, 2024
Verified
In order to accelerate the receipt of cash from receivables owners may sell the receivables to another company for cash.
Receivables Owners
Individuals or entities that are entitled to receive payments from customers or clients for goods delivered or services provided.
Accelerate Receipt
Accelerate Receipt refers to the process of speeding up the collection or receipt of funds, often related to accounts receivable or other receivables.
- Understand the rationale and methods for accelerating cash receipts from receivables.
- Recognize the implications of selling receivables on a company's cash flow.
Verified Answer
AA
Learning Objectives
- Understand the rationale and methods for accelerating cash receipts from receivables.
- Recognize the implications of selling receivables on a company's cash flow.