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Alyssa Mae Eguia
on Nov 14, 2024

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The sale of receivables by a business

A) indicates that the business is in financial difficulty.
B) is generally the major revenue item on its income statement.
C) is an indication that the business is owned by a factor.
D) can be a quick way to generate cash for operating needs.

Sale of Receivables

Sale of Receivables involves a company selling its outstanding invoices to a third party to receive immediate payment, typically at a discount.

Financial Difficulty

A situation where an individual or organization struggles to meet financial obligations.

Operating Needs

The essential requirements necessary for a business to maintain and grow its operations, including working capital, equipment, and inventory.

  • Discern the implications that come with the factoring of receivables, including how service charges are processed.
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Chris Beal JrNov 15, 2024
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