Nonrecourse basis is the basis on which accounts receivable once sold to a factor, the factor accepts all the credit risks on the purchased accounts.

Name: Nonrecourse basis is the basis on which accounts receivable once sold to a factor, the factor accepts all the credit risks on the purchased accounts.
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Question

Quizplus · Accepted Answer

Nonrecourse basis means that the factor, not the seller, assumes the credit risk on the purchased accounts. Therefore, the statement in the question is true.

Nonrecourse Basis Is the Basis on Which Accounts Receivable Once