Which Statement Is Correct

question 63

Multiple Choice

Which statement is correct?

• A)A transfer with recourse means that the purchaser of the receivables takes the collection risk.
• B)A transfer without recourse means that the seller of the receivables takes the collection risk.
• C)Factoring with recourse reduces a current ratio that is >1.
• D)Factoring without recourse creates a liability on the balance sheet.

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