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:

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An unusual mass or swelling in the testicle, which can be a sign of various conditions, including cancer.

Diuretic Use

The administration of substances that promote the increased production of urine, often used to manage fluid balance and blood pressure.

Fluid Retention

The accumulation of excess fluids in the body's tissues, leading to swelling, often associated with conditions affecting the heart, kidney, or liver.

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The consumption of food and drink considered in terms of its qualities, composition, and its effects on health.