Which of the Following Statements Is False

question 12

Multiple Choice

Which of the following statements is false?

• A) Commercial banks, finance companies, and factors, which are firms that purchase the receivables of other companies, are the most common sources for secured short-term loans.
• B) The factoring arrangement may be without recourse, in which case the lender bears the risk of bad-debt losses.
• C) In a floating lien, general lien, or blanket lien arrangement, specific inventory is used to secure the loan.
• D) If a firm sells its goods on terms of net 30, then the factor will pay the firm the face value of its receivables, less a factor's fee, at the end of 30 days.

Distinguish between different types of accounts, their normal balances, and where they are reported in financial statements.

Compute the payables and payment amounts within discount periods.

Understand the recording of inventory purchases and returns under both the perpetual and periodic inventory methods.

Recognize the purpose and execution of a debit memorandum.

---

Definitions:

Display

To show or exhibit something, often for viewing by the public or for a specific purpose.

Nursing Process

is a systematic approach to provide nursing care, involving assessment, diagnosis, planning, implementation, and evaluation.

Diagnosing

The process of identifying a disease or condition based on its signs, symptoms, and possibly other diagnostic tests.

Determining Priorities

The process of establishing the order in which tasks or decisions are to be addressed based on their relative importance.