If a Company Sells Its Accounts Receivables to a Factor

question 89

Multiple Choice

If a company sells its accounts receivables to a factor

• A) the seller pays a commission to the factor.
• B) the factor pays a commission to the seller.
• C) there is a gain on the sale of the receivables.
• D) the seller defers recognition of sales revenue until the account is collected.

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Definitions:

Deindividuation

A tendency to lose one’s sense of individuality when in a group or crowd.

High Cognitive Load

A situation where the task at hand requires a significant amount of mental effort and working memory, potentially affecting performance and decision-making.

Self-Awareness

The conscious knowledge of one's own character, feelings, motives, and desires.

Social Loafing

The phenomenon where individuals exert less effort to achieve a goal when they work in a group than when they work alone.