When Accounts Receivable Are Factored: Money Is Advanced to the Borrower

question 137

True/False

When accounts receivable are factored: money is advanced to the borrower as a loan against accounts receivable; accounts receivable balances remain on the balance sheet; the customer payment is made to the firm, which then submits the payment to the bank; and interest is charged on the loan.

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Definitions:

Visual Action Track

Also known as the dorsal stream, it is a pathway in the brain that is involved in the processing of movement and spatial location.

Dual Processing

The theory that the brain operates using two separate systems for processing information: one that is intuitive and automatic, and another that is deliberative and analytical.

Mental Activity

The operation of the mind in processing thoughts, remembering information, and solving problems.

Synchronized Activity

The coordination of events to operate a system in unison or the simultaneous occurrence of activities or processes.