Which Statement Is Not Correct

question 47

Multiple Choice

Which statement is not correct?

• A)Factoring with recourse creates a liability on the balance sheet.
• B)Factoring with recourse creates a liability and receivable on the balance sheet.
• C)Factoring without recourse negatively impacts the working capital ratio.
• D)Factoring without recourse means that the seller takes the collection risk.

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Definitions:

Price Level

An index that measures the average of current prices across the entire spectrum of goods and services produced in the economy, reflecting the cost of living and inflation.

Average Price Level

The average price level is a measure of the overall level of prices in an economy over a period of time, often used to gauge inflation.

Exports

Goods or services that are produced in one country and sold to buyers in another, contributing to a country's foreign trade.

Real Balances

The purchasing power of an individual's or firm's cash in hand, considering inflation or deflation effects.