Factoring Accounts Receivable Is Not a Form of Secured Short-Term

question 19

True/False

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.

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Definitions:

Hourly Shift

Hourly Shift refers to the scheduled period of work or duty for an employee or a group of employees based on an hourly rate, often used in industries with variable workloads.

Cash Budget

A financial plan that estimates the cash inflows and outflows for a business over a specific period of time.

Depreciation Expense

An accounting method to allocate the cost of a tangible asset over its useful life, reflecting the asset's wear and tear or obsolescence.

Beginning Cash Balance

The amount of cash a company has at the start of a new financial period, carried over from the end of the previous period.