If a Company Sells Its Accounts Receivables to a Factor

question 140

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.

Grasp the fundamentals and applications of futures markets and their relationship with arbitrage opportunities.

Comprehend the impact of exchange rates on profits and how businesses can hedge against this risk.

Recognize the benefits swaps provide in managing financial risks and restructuring balance sheets.

Calculate the financial outcome of engaging in futures contracts based on index movements.

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Definitions:

Nature-Nurture Interactions

The interplay between genetic inheritance and environmental influences in shaping behaviors, personalities, and other traits.

Heredity

The transmission of genetic characteristics from parents to offspring through their genes.

Temperament

An individual's inherent personality traits, including their disposition and their typical reaction to different situations.

Maturation

The progression through which a person grows to reach a state of complete maturity or optimal operation.