The practice of selling a firm's accounts receivable to another firm at a discount is known as
A) excising.
B) exporting.
C) crediting.
D) factoring.

Question

Quizplus · Accepted Answer

Factoring is the correct term for the practice of selling a firm's accounts receivable to another firm at a discount. This is often done to improve cash flow by receiving immediate payment for invoices rather than waiting for the customer payment terms.

The Practice of Selling a Firm's Accounts Receivable to Another