If a Firm Starts Selling Its Accounts Receivable to a Factor

question 41

Multiple Choice

If a firm starts selling its accounts receivable to a factor, how will the firm's cash cycle change?

• A) The firm will increase its cash cycle since it will now have to wait longer for payment.
• B) The firm will decrease its cash cycle since accounts receivable is reduced.
• C) Depending on conditions, the cash cycle could either increase or decrease.
• D) There will be no change.

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Definitions:

Physical Appearance

The outward look or external characteristics of an individual, including body shape, skin color, hair, and facial features.

Major Depressive Disorder

A mental health disorder characterized by persistent feelings of sadness or a lack of interest in external stimuli, significantly impairing daily function.

Contemplated Suicide

The act of considering or thinking about taking one's own life.

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Experiences or feelings that are uncomfortable, painful, or troubling to the individual, often related to illnesses or psychological disorders.