Leonard needs cash right away to take advantage of a discount his supplier is offering.He sells his accounts receivable to another company to get the cash he needs.What is the sale of his accounts receivable for cash called?

Question

Quizplus · Accepted Answer

The sale of accounts receivable for cash is known as factoring. This allows the company to receive immediate cash in exchange for their outstanding invoices, which can be beneficial for companies looking to meet immediate cash needs.

Leonard Needs Cash Right Away to Take Advantage of a Discount