Geoff works for a company that buys accounts receivables from a firm for less than face value, but collects the face value of the accounts. Geoff works for a
A) sales finance company.
B) credit union.
C) trust company.
D) consumer finance company.
E) factoring company.

Question

Quizplus · Accepted Answer

Geoff's company buys accounts receivables at a discounted price, which is a characteristic of a factoring company. Factoring companies purchase invoices from other businesses at a discount and collect the full amount from the customers who owe the money.

Geoff Works for a Company That Buys Accounts Receivables from a Firm