Detailed Answer
Choice "c" is correct. The following are methods of converting accounts receivable (AR) into cash:
1. Collection agencies - used to collect overdue AR.
2. Factoring AR - selling AR to a factor for cash.
3. Cash discounts - offering cash discounts to customers for paying AR quickly (or paying at all). For example: 2/10, net 30.
4. Electronic fund transfers - a method of payment, which electronically transfers funds between banks.