The Process of a Company Selling Its Accounts Receivable to Another

question 71

Multiple Choice

The process of a company selling its accounts receivable to another company is referred as:

• A)discounting.
• B)adjusting.
• C)assignment.
• D)factoring.

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Definitions:

Screening

The process of evaluating or assessing something for a specific purpose, such as identifying suitable candidates for a job or detecting diseases.

True Risks

Genuine uncertainties and potential for loss that are inherent in decisions or activities, without assurance of outcomes.

Low Deductible

Refers to insurance policies with a smaller initial amount paid out of pocket by the policyholder before the insurance coverage kicks in, typically leading to higher premiums.

Premium

The amount paid for an insurance policy or the extra cost above the normal price for a product or service, often reflecting additional benefits or coverage.