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Commerce · Q131

Financial Management

Graduate and Post Graduate · Commerce · question 131

Q131

Factoring is a form of financing.

A.
payable
B.
receivables
Answer
C.
borrowings
D.
debts

Answer: Option B

Solution

Answer: Option B
Solution:
Factoring is a form of receivables financing. Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable (i.e., invoices) to a third party (called a factor) at a discount.