A company is selling its receivables when it issues its own credit card.

Question

Quizplus · Accepted Answer

When a company issues its own credit card, it allows customers to purchase goods or services on credit. The payments for these purchases are collected by the credit card company, and the company may choose to sell the future payments (receivables) to a third-party financial institution in exchange for immediate cash. This process is known as securitization or factoring. Therefore, the statement is true.

A Company Is Selling Its Receivables When It Issues Its