A Factor Will Buy Accounts Receivable for

question 112

Multiple Choice

A factor will buy accounts receivable for

• A) more than their face value.
• B) less than their face value.
• C) their present value.
• D) their par value.
• E) the interest that can be collected from them.

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Definitions:

Acetone

A volatile, colorless solvent widely used in organic chemistry and as a nail polish remover, known for its ability to dissolve many plastics and synthetic fibers.

Reactive Intermediate

Transitory species that are formed during a chemical reaction and participate in further reaction steps until the final products are produced.

Oxidation

The process where a substance undergoes an increase in its oxidation state, often associated with the addition of oxygen or removal of hydrogen.

Reduction

A chemical process where a molecule, atom, or ion acquires electrons or undergoes a reduction in its oxidation state.