Factoring Is the Process of Putting Up Accounts Receivable as Collateral

question 47

True/False

Factoring is the process of putting up accounts receivable as collateral to obtain cash.

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Definitions:

Toroid

A doughnut-shaped component used in magnetic circuits, with a coil of wire wrapped around a ferromagnetic core to concentrate magnetic fields.

Tape-Wound Core

A core made by winding a continuous length of magnetic metal into a spiral.

Metal Sheets

Flat pieces of metal of uniform thickness, produced by rolling or hammering, used in a wide range of manufacturing and construction processes.

Continuous Tape

A long, uninterrupted strip of material, often used for recording or measuring.