An arrangement where receivables are sold to another company for immediate cash is called:
A) factoring
B) leasing
C) depreciating
D) renting

Question

Quizplus · Accepted Answer

This describes the process of factoring, where a company sells its receivables to a factor (financial company) for immediate cash. This helps the company to receive cash quicker and avoid the need for collection efforts. Leasing, depreciating, and renting do not involve the selling of receivables.

An Arrangement Where Receivables Are Sold to Another Company for Immediate