Please answer “True” or “False” and expain WHY to the following statements. Factoring is a method for companies with high risk accounts receivable to insure the receipt of at least some of the cash...

Please answer “True” or “False” and expain WHY to the following statements.

1. Factoring is a method for companies with high risk accounts receivable to insure the receipt of at least some of the cash owed to them.


2. Leasing is not considered a debt for balance sheet and liquidity purposes.


3. A company with a liquidity covenant of $500,000 must maintain that amount of available cash at all times.