When a Business Factors Its Receivables,the Factor Collects Cash on the Receivables

question 181

True/False

When a business factors its receivables,the factor collects cash on the receivables.

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Definitions:

Goods

Physical items that are produced or purchased for sale.

Services

Intangible products such as expertise, assistance, or access to resources provided by businesses or professionals.

Accounting Period

A specific time period for which financial records and statements are prepared for a business or organization.

One Quarter

A term referring to one-fourth of a year, used in financial and business contexts to divide the fiscal or calendar year into four periods for reporting purposes.