Aardvark Needs Some Quickly Obtainable Funds to Pay Some Overdue

question 13

Multiple Choice

Aardvark needs some quickly obtainable funds to pay some overdue bills. It is considering using factoring-obtaining cash in exchange for outstanding accounts receivable funds. Which of the following, if True, would strengthen the case for using factoring?

• A) Factoring can be a costly way to obtain ready cash.
• B) Aardvark would not have to liquidate any of its core assets to stay in business.
• C) Customers may be annoyed if they think their account has been turned over to a collection agency.
• D) Additional accounting practices are necessary to keep track of factored customer accounts.
• E) Factoring companies usually won't take on receivables more than 90 days old.

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