Bank Exams Questions

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Accounts-receivable financing is a type of asset-financing arrangement in which a company uses its receivables — outstanding invoices or money owed by customers — to receive financing.

when a business sells its AR (accounts receivable) to a factoring company and receives short-term business funding in return, this is what called as Accounts Receivable Financing.

How it works ::

Business-to-business sales are often offered with payment terms of 30, 60 or 90 days.

The buyer receives the product, but doesn't submit payment until the mutually agreed-upon date.

The seller records the sale as revenues and increases the accounts receivable by the amount of the sale.

When the payment arrives, the seller decreases the accounts receivable and increases cash.

Accounts receivable financing allows the seller to get the cash immediately by selling the receivable to a third party. This is called factoring.

Besides  some  federal  features,the Constitution of India also has some unitary  features  as  well.  All  States have  no  equal  representation  in the  Rajya  Sabha,because  in  India the states are given representation in the Rajya Sabha on the basis of population.  Hence,  the  number  of representatives  varies  from  state to    state, for    instance,    Uttar Pradesh  has  31  members  whereas Tripura  has  only  1  member.This principle    is    considered    as    a safeguard    for    smaller    states.States  in  India  also  have  no  right to territorial integrity. The Parliament  can  change  the  area,boundaries  or  name  of  any  state by unilateral action, So the consent of   a   State   is   not   required   for altering  its  boundaries,Moreover,despite dual Polity,the Constitution  of  India  adopted  the system  of Single citizenship.There is  only  Indian  citizenship  and  no separate state citizenship.