Advance Factoring Is Where the Firm Selling Its Accounts Receivable

question 123

True/False

Advance factoring is where the firm selling its accounts receivable is paid on the normal collection date or net due date of the account.

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Definitions:

Liability

Refers to the legal responsibilities and obligations that arise from actions or omissions that could result in harm or loss to another party.

Warranty Liability

A legal obligation arising from warranty provisions that hold a seller or manufacturer responsible for defects or non-compliance of a product or service with the stated warranties or guarantees.

Transfer

The act of moving an asset, title, right, or interest from one entity or individual to another, which can occur through various means such as sales, gifts, or inheritance.

Acceptance

The act of agreeing to the terms of an offer, thereby creating a binding contract.