In a(n) ________ transaction, the seller makes a one-time arrangement with a bank or other financial institution to take over responsibility for collecting the account receivable.

Question

Quizplus · Accepted Answer

Forfaiting is a financial transaction where the seller sells its receivables to a third party (a forfaiter) at a discount in exchange for immediate cash, transferring the responsibility of collection to the forfaiter.

In A(n) ________ Transaction, the Seller Makes a One-Time Arrangement