To Reduce the Cost of Collecting Its Accounts Receivable, a Company

question 102

Multiple Choice

To reduce the cost of collecting its accounts receivable, a company sells its accounts receivable to a financial organization.The service is called:

• A)collection agency advance
• B)lock-boxing
• C)factoring
• D)funding

Recognize the accounting treatment and reporting of current liabilities.

Comprehend the management of liabilities in terms of liquidity and profitability.

Apply correct journal entries for transactions involving liabilities.

Distinguish between different types of liabilities including legal obligations.

---

Definitions:

Research Psychologist

A professional who conducts scientific studies to understand, explain, and predict aspects of human behavior and mental processes.

Reliability

In the context of psychological testing and measurement, reliability refers to the consistency of a test's results over time.

Informant Reports

Data collected from individuals who provide information about someone else's behavior, characteristics, or symptoms.

Self-report

A method in research where participants provide information about themselves, typically through questionnaires or interviews.