Danzig Inc

question 26

Multiple Choice

Danzig Inc. factors $10,000,000 of its accounts receivables without recourse for a finance charge of 4%. The finance company retains an amount equal to 10% of the accounts receivable for possible adjustments. What would be recorded by Danzig as a gain (loss) on the transfer of receivables?

• A) gain of $400,000
• B) loss of $400,000
• C) loss of $1,000,000
• D) loss of $1,400,000

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Definitions:

Unconscious Conflict

Psychological struggles within the mind that occur without conscious awareness, often influencing behavior and emotions.

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome, often reflecting a response to stress or threat.

Repression

A defense mechanism in psychoanalytic theory where distressing thoughts, desires, or experiences are unconsciously excluded from conscious awareness.

Defense Mechanism

Psychological strategies used by individuals to cope with reality and maintain self-image by unconsciously denying or distorting reality.