When Accounts Receivable Are Factored: the Borrower Sells the Receivable;

question 82

True/False

When accounts receivable are factored: the borrower sells the receivable; accounts receivable balances are removed from the balance sheet; the customer payment is made to the factor; and interest is charged on the funds advanced.

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Definitions:

E-commerce Disputes

Conflicts or disagreements arising from the buying and selling of goods and services over the internet.

National Arbitration Forum

An organization that provided arbitration and mediation services for disputes, primarily involving consumer and commercial issues.

Alternative Dispute Resolution Act

Legislation that provides for the settlement of disputes through mechanisms other than litigation, such as arbitration or mediation.

Federal District Court

A general trial court of the United States federal court system that deals with both civil and criminal cases.