Factoring Is the Process of Selling Accounts Receivable to Another

question 41

Multiple Choice

Factoring is the process of selling accounts receivable to another firm at

• A) the prime lending rate.
• B) a price equal to the sales price.
• C) a discount off of the original sales price.
• D) a premium above the original sales price.

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Definitions:

Loss of Funds

The reduction or depletion of monetary assets, often due to mismanagement, investment losses, or theft.

Banking Concerns

Issues or problems related to the operations, services, or stability of banks and financial institutions.

Electronic Check

An electronic check, or e-check, is a digital version of a traditional paper check, used to make payments online by transferring money from the payer's checking account.

Internet

A vast global network that connects computers around the world, enabling users to share information and communicate.