Selling accounts receivables to factors and allowing credit terms such as 2/10, n/30
A)represent common business practices.
B)represent ways to accelerate receivables collections.
C)result in collections that are less than the gross accounts receivable.
D)All of these answer choices are correct.

Question

Quizplus · Accepted Answer

Selling accounts receivables to factors and offering credit terms like 2/10, n/30 are common practices to accelerate cash flow, and they typically result in receiving less than the gross accounts receivable due to discounts or fees.

Selling Accounts Receivables to Factors and Allowing Credit Terms Such