Pledges of accounts receivable and factoring of accounts receivable are made on__________ basis, respectively.
A) a nonnotification and a notification
B) a notification and a nonrecourse
C) a nonrecourse and a notification
D) a notification and a recourse

Question

Quizplus · Accepted Answer

Pledges of accounts receivable involve a nonnotification process where the debtor is not informed of the pledge, while factoring of accounts receivable involves a notification process where the debtor is informed of the factoring arrangement. Therefore, the correct answer is A.

Pledges of Accounts Receivable and Factoring of Accounts Receivable Are