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:

Department Meeting

A structured gathering of members within a particular department of an organization, aimed at discussing relevant issues, progress, and plans.

Agenda

A list or plan of topics to be discussed or actions to be taken during a meeting or event, typically organized in order of priority.

Body Language

Non-verbal communication through physical behaviors, such as gestures, postures, and facial expressions, which can reveal a person's feelings and intentions.

Face-to-face Communication

Direct interaction between two or more individuals, where they can see and hear each other in real-time.