A factor will buy accounts receivable for
A) more than their face value.
B) less than their face value.
C) their present value.
D) their par value.
E) the interest that can be collected from them.

Question

Quizplus · Accepted Answer

Factors typically buy accounts receivable at a discount, which means they pay less than the face value of the receivables. This is because there is a risk involved in collecting the full amount from customers, and also due to the factor's profit margin.

A Factor Will Buy Accounts Receivable for