Factoring refers to:
A)determining the aging schedule of the firm's accounts receivable.
B)the sale of a firm's accounts receivable to a financial institution.
C)the determination of the average collection period.
D)scoring a customer based on the 5 C's of credit.
E)All of the above.

Question

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Factoring involves selling a firm's accounts receivable to a financial institution, usually at a discount, in exchange for immediate cash. Options A, C, and D refer to other credit management concepts.

Factoring Refers To