A company may sell its accounts receivable to a factor to
A)speed up the collection of accounts receivable.
B)hide the receivables from creditors.
C)avoid selling on account.
D)allow its customers more time to pay their bills.

Question

Quizplus · Accepted Answer

By selling its accounts receivable to a factor, the company can receive cash immediately instead of waiting for its customers to pay. This speeds up the collection of accounts receivable.

A Company May Sell Its Accounts Receivable to a Factor