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:

Unconscious Conflicts

Internal struggles within the mind that occur without the individual's awareness, often influencing behavior and emotions.

Fixation

An obsessive focus or attachment to an object, concept, or person, often to the exclusion of other considerations.

Anxiety

Anxiety is a feeling of fear, dread, and uneasiness that may occur as a reaction to stress, and can impact daily functioning if too intense or persistent.

Defence Mechanisms

Psychological strategies brought into play by the unconscious mind to manipulate, deny, or distort reality in order to defend against feelings of anxiety and unacceptable impulses.