Which of the Following Is True When Accounts Receivable Are

question 29

Multiple Choice

Which of the following is true when accounts receivable are factored without recourse?

• A) The transaction may be accounted for either as a secured borrowing or as a sale, depending upon the substance of the transaction.
• B) The receivables are used as collateral for a promissory note issued to the factor by the owner of the receivables.
• C) The factor assumes the risk of collectibility and absorbs any credit losses in collecting the receivables.
• D) The financing cost (interest expense) should be recognized ratably over the collection period of the receivables.

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Definitions:

Onsite Interview

A face-to-face meeting between a job applicant and potential employer, typically conducted at the employer's place of business, as part of the hiring process.

Good Etiquette

The practice of exhibiting behaviors and manners considered respectful and appropriate in social or professional settings.

Positive Body Language

Non-verbal signals that convey a positive attitude or reaction, such as smiles, open postures, and direct eye contact.

Résumé

A persuasive summary of your qualifications for employment.