Discount to obtain needed short-term funds

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Reference no: EM13947594

1) Factoring accounts receivable is not a form of secured short-term borrowing. It entails the sale of accounts receivable at a discount to obtain needed short-term funds.

True

False

2) A firm purchased goods on January 27 with a purchase price of $1,000 and credit terms of 2/10 net 30 EOM. The firm paid for these goods on February 9. The must pay _____ for the goods.

a. $800;

b. $900.

c. $1,000;

d. $980;

Reference no: EM13947594

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