Discounting a note receivable is most similar to ________.
A) factoring an account receivable
B) pledging an account receivable
C) securitizing an account receivable
D) assigning an account receivable

Question

Quizplus · Accepted Answer

Discounting a note receivable is most similar to factoring an account receivable because both involve selling the receivable to a third party (usually a financial institution) for immediate cash, transferring the risk of collection to the buyer.

Discounting a Note Receivable Is Most Similar to ________