Factoring Is the Process of Purchasing Accounts Receivable from Corporations

question 28

True/False

Factoring is the process of purchasing accounts receivable from corporations usually with no recourse to the seller if the receivables go bad.

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Definitions:

Cash Investments

Funds placed into financial instruments or assets with the expectation of preserving capital and generating a return.

Capital

The wealth in the form of money or assets owned by an individual or organization, available for investment.

Assets

Resources owned or controlled by a business that are expected to bring future economic benefits.

Recorded

The act of documenting transactions or events in financial records or other types of logs.