If a company factors its accounts receivables, this will have the effect of making its cash cycle appear shorter.

Name: If a company factors its accounts receivables, this will have the effect of making its cash cycle appear shorter.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Factoring accounts receivables means selling them to a third party at a discount in order to receive cash immediately. This shortens the time it takes for the company to receive cash from its customers, thereby making its cash cycle appear shorter.

If a Company Factors Its Accounts Receivables, This Will Have