When factoring accounts receivable without recourse, the buyer normally assumes the burden of...

Question:

When factoring accounts receivable without recourse, the buyer normally assumes the burden of billing and collecting accounts.

(a) True

(b) False.

Factoring:

Factoring is defined as a scheme in which the business entities sell their debtors or accounts receivables to a factoring company. These companies make the payment to the seller considering the invoice value.

Answer and Explanation: 1

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The given statement is True.

Explanation:

When a business entity sells the accounts receivable with a term without recourse, it does not assume any...

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Operating Cycle & Cash Cycle: Definition & Calculations

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Chapter 17 / Lesson 2
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The operating cycle and cash conversion cycle are both tools to evaluate the timeline of when a business will become profitable. Explore the calculations of each, and identify their importance to a business.


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