In considering factoring accounts receivable, which of the following statements is/are correct?
I. Maturity factoring occurs when the firm receives payment at the normal collection or due date of the factored accounts.
II. Advance factoring occurs when the firm receives payment in prior to the normal collection or due date of the factored accounts.

Question

Quizplus · Accepted Answer

Both statements are correct. Maturity factoring is when the firm receives payment at the normal collection or due date of the factored accounts. Advance factoring is when the firm receives payment prior to the normal collection or due date of the factored accounts. Therefore, both I and II are correct statements.

In Considering Factoring Accounts Receivable, Which of the Following Statements