If a Retailer Regularly Sells Its Receivables to a Factor

question 7

Multiple Choice

If a retailer regularly sells its receivables to a factor the service charge of the factor should be classified as a(n)

• A) selling expense.
• B) interest expense.
• C) other expense.
• D) contra asset.

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Definitions:

Work Teams

Groups of employees who collaborate on projects or tasks to achieve common objectives.

On Time Delivery

The process of providing goods or services to customers at the agreed-upon time without delay.

Informal Networks

Unofficial channels of communication and interpersonal connections within an organization or community, which can influence decision-making and information flow.

Training and Development

A systematic process to enhance the knowledge, skills, and capabilities of employees to improve their job performance.