In Considering Factoring Accounts Receivable, Which of the Following Statements

Multiple Choice

In considering factoring accounts receivable, which of the following statements is (are) correct?
I. Maturity factoring occurs when the firm receives payment at the normal collection or due date of the factored accounts.
II. Advance factoring occurs when the firm receives payment in prior to the normal collection or due date of the factored accounts.

A) Only statement I is correct.
B) Only statement II is correct.
C) Both statements I and II are correct.
D) Neither statement I nor II is correct.