If your company factors its accounts receivable,it:
A)will focus its collection activities on only the largest Accounts Receivable balances.
B)sells outstanding receivables to another company.
C)will use major national credit cards to allow its customers to pay for goods.
D)will engage in aggressive hounding of its clients to pay their bills.

Question

Quizplus · Accepted Answer

The way this factoring arrangement works is that your company receives cash for the receivables it sells to the factor (minus a factoring fee)and the factor then has the right to collect the outstanding amounts owed by the your customers.

If Your Company Factors Its Accounts Receivable,it