If a Retailer Regularly Sells Its Receivables to a Factor

question 107

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:

Advantages

The benefits or favorable conditions that give an entity a superior position or competitive edge over others in its field.

Disadvantages

Negative aspects, drawbacks, or limitations associated with a situation, action, or decision.

Response

The reaction or reply to a stimulus, question, or situation, often used in contexts of customer feedback, marketing, or biological processes.

Product Availability

Refers to the extent to which goods are in stock and accessible for purchase by consumers.