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Terraces can form as a result of
Factors With Recourse
A provision in factoring transactions where the seller must cover the costs of any uncollected receivables sold to the factor.
Prevailing Borrowing Rate
The current interest rate that lenders are charging borrowers, often influenced by central bank rates and market conditions.
Imputed Interest
The theoretical interest deducted or accrued on obligations not explicitly stating an interest rate, used for tax and accounting purposes to reflect the true cost or value of the financial instruments.
Net Realizable Value
The estimated selling price of an asset in the ordinary course of business minus any costs associated with its sale or disposal.
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