Factoring Occurs When a Business Sells Its Receivables to a Finance

question 70

True/False

Factoring occurs when a business sells its receivables to a finance company or bank.

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Definitions:

Unearned Subscriptions

Income received in advance for subscriptions that have not yet been fulfilled or services that have not yet been provided.

Revenue Recognition Principle

An accounting principle that outlines the specific conditions under which revenue is recognized.

Unearned Rent Revenue

Income received by a company for rent that has not yet been earned because the service period has not occurred.