In Considering Factoring Accounts Receivable, Which of the Following Statements

question 33

Multiple Choice

In considering factoring accounts receivable, which of the following statements is (are) correct?
I. Maturity factoring occurs when the firm receives payment at the normal collection or due date of the factored accounts.
II. Advance factoring occurs when the firm receives payment in prior to the normal collection or due date of the factored accounts.

• A) Only statement I is correct.
• B) Only statement II is correct.
• C) Both statements I and II are correct.
• D) Neither statement I nor II is correct.

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Definitions:

Hydrogen Gas

A colorless, odorless, highly flammable gas, the lightest of all gases, used in various industrial processes.

Temperature

An indicator of how hot or cold a system is, determined by the mean kinetic energy of its particles.

Ideal Gas Law

The principle that the state of an ideal gas is determined by its pressure, volume, and temperature, described by the equation PV=nRT.

Gaseous System

A state of matter composed of particles that have neither a defined volume nor shape, often able to expand to fill any container.