Kliting Co has a lot of outstanding accounts receivable but customers are slow to pay, and it doesn't have sufficient cash to pay its suppliers and employees at the end of the month. Instead of borrowing money, Kliting decides to sell its accounts receivable. This form of financing is known as:
A) a line of credit.
B) factoring.
C) equity financing.
D) commercial paper.
E) trade credit.
Question 2
Which of the following is one of the pieces of HRM legislation aimed at eliminating workplace discrimination on the basis of race, gender, age, and/or other characteristics?
A) Fair Labor Standards Act (1938)
B) Americans with Disabilities Act (1990)
C) Family and Medical Leave Act (1993)
D) National Labor Relations Act (1935)
E) Occupational Safety and Health Act (1970)
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Example of calculation of days in accounts receivable (AR).
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