A Company Regularly Sells Its Receivables to a Factor Who

question 84

Multiple Choice

A company regularly sells its receivables to a factor who assesses a 2% service charge on the amount of receivables purchased.Which of the following statements is true for the seller of the receivables?

• A)The loss section of the income statement will increase each time receivables are sold.
• B)The credit to Accounts Receivable is less than the debit to Cash when the accounts are sold.
• C)Operating expenses will increase each time accounts are sold.
• D)The other expenses section of the income statement will increase each time accounts are sold.

Recognize the importance of environmental factors and community infrastructure in disease prevention.

Understand the historical development of public health initiatives and their impact on community health.

Analyze the role of government and non-governmental organizations in the advancement of public health.

Identify key figures and their contributions to public health and nursing.

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Definitions:

Pessimistic Attributions

The tendency to explain the causes of negative events in one's life as internal, stable, and global.

Anchoring Effect

A cognitive bias where an individual relies too heavily on an initial piece of information (the "anchor") when making decisions.

Confirmation Bias

The inclination to seek out, interpret, prefer, and remember data in a manner that affirms one's existing beliefs or hypotheses.

Psychological Disorder

A mental disorder characterized by patterns of thought, behavior, or emotions that are significantly distressing, dysfunctional, or deviant from cultural norms.