If a company is looking to shorten their cash-to-cash cycle,they can sell their accounts receivable and this is called
A)recourse.
B)factoring.
C)writeoff.
D )recovery.

Question

Quizplus · Accepted Answer

Factoring involves selling accounts receivable to a third-party (called a factor) in exchange for immediate cash. This can help a company to shorten their cash-to-cash cycle by converting their accounts receivable (which may take 30-90 days to collect) into cash more quickly. Recourse refers to the ability of the factor to recover payment from the company if the customer fails to pay, while a writeoff refers to the company recognizing a bad debt expense and removing the accounts receivable from their books. Recovery refers to the process of collecting on a past due account.

If a Company Is Looking to Shorten Their Cash-To-Cash Cycle,they