In Considering Factoring Accounts Receivable, Which of the Following Statements

question 65

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

---

Definitions:

Entrapment

A psychological state or situation where an individual feels compelled to continue a course of action due to prior investment, despite the current costs outweighing the benefits.

Gradual Process

A slow and step-by-step progression or development of something over time.

Commitment

The state or quality of being dedicated to a cause, activity, or relationship.

Stanford Prison Study

A psychological experiment conducted in 1971 by Philip Zimbardo to investigate the effects of perceived power, focusing on the struggle between prisoners and prison officers.