The Trey Co

question 71

Multiple Choice

The Trey Co. sells $75,000 of accounts receivable to a factor and receives 90% of the value of the factored accounts less a 15% commission based on the gross amount of factored accounts receivable. After the journal entry to record this factoring transaction is made, Trey Co.'s total assets will be

• A) reduced by $67,500.
• B) reduced by $7,500.
• C) reduced by $11,250.
• D) increased by $41,000.

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Definitions:

Performance Goals

Goals framed in terms of performing well in front of others, being judged favorably, and avoiding criticism.

Intrinsic Pleasure

A feeling of satisfaction or joy that comes from within, not dependent on external factors.

Attachment Style

Patterns of attachment behavior that are established in early childhood and affect relationships throughout one's life, including secure, anxious, and avoidant attachment styles.

Trust

The firm belief in the reliability, truth, ability, or strength of someone or something, often considered foundational in relationships and societal interactions.