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:

Emotional Ways

Approaches or methods that are heavily influenced by or appeal to emotions, often used in making decisions or in interpersonal communications.

Branding

involves creating a distinct image, identity, and reputation for a product, service, or organization in the mind of the target audience, using elements such as logos, messaging, and design.

Rational Ways

Approaches or methods guided by logic and reason, often emphasizing the importance of evidence-based decision-making.

Intrinsically Unethical

Refers to actions or behaviors that are inherently wrong or immoral by nature, regardless of context or consequences.