Which of the following statements about factoring is true?
A) Factoring firms sell the receivables of other firms.
B) Factoring involves the outright sale of a firm's accounts receivable to the factor.
C) The firm, not the factor, bears the risk of collecting bad receivables in a factoring arrangement.
D) The borrowing firm is able to obtain a greater advance against inventory in a factoring
arrangement than in a typical line of credit secured by accounts receivable.
B
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a. cash is increased because inventory is a current asset. b. inventory is an expense deducted in computing net earnings, but is not a use of cash. c. the net increase in inventory is part of the difference between cost of goods sold and cash paid to suppliers. d. all changes in noncash accounts must be disclosed.
Firms account for material errors in previously issued financial statements by retrospectively restating net income of prior periods and adjusting the beginning balance in Retained Earnings of the current period
Indicate whether the statement is true or false
An effective communicator of a message develops the message from the receiver's viewpoint which is a "you attitude" rather than a "me attitude."
Indicate whether the statement is true or false
In persuasive communications, a(n) _____ question is posed solely for effect, with no expectation of a reply or a clear yes or no
Fill in the blank(s) with correct word