________ involves the sale of accounts receivable.
A) Trust receipt loan
B) Factoring
C) Field warehouse arrangement
D) Pledging of accounts receivable

Question

Quizplus · Accepted Answer

Factoring involves the sale of accounts receivable to a third party, called a factor, at a discounted rate. This allows the company to receive immediate cash for their outstanding invoices and transfer the risk of non-payment to the factor. Trust receipt loan, field warehouse arrangement, and pledging of accounts receivable do not involve the sale of accounts receivable.

________ Involves the Sale of Accounts Receivable