Factoring receivables is beneficial to a seller for all of the following reasons except:
A. Seller avoids the cost of billing and accounting for receivables.
B. May transfer the risk of bad debts to the factor.
C. There are no fees for factoring.
D. Allows firms to receive cash earlier.
E. Passes ownership of the receivables to the factor.
Answer: C
You might also like to view...
What are some of the concerns if the European Union decides to sign a free trade agreement with the United States?
What will be an ideal response?
According to the revenue recognition principle, revenues are recognized when they are _________________________
Fill in the blank(s) with correct word
In a production cost report, ________ includes the number of units completed and transferred out of a process and the number of units remaining in ending WIP. The weighted-average method is used.
A) total units estimated for B) total units budgeted for C) total units accounted for D) total units to account for
Direct-response TV (DRTV) includes short commercials of less than two minutes, 30-minute or longer infomercials, and home shopping networks such as QVC and HSN
Indicate whether the statement is true or false