Nonrecourse basis is the basis on which accounts receivable are sold to a factor with the understanding that the factor accepts all credit risks on the purchased accounts.

Name: Nonrecourse basis is the basis on which accounts receivable are sold to a factor with the understanding that the factor accepts all credit risks on the purchased accounts.
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Question

Quizplus · Accepted Answer

Nonrecourse basis means that the factor assumes all the credit risk on the purchased accounts, so the statement is true.

Nonrecourse Basis Is the Basis on Which Accounts Receivable Are