Which Statement Is Correct

question 60

Multiple Choice

Which statement is correct?

• A)Factoring without recourse creates a receivable on the balance sheet.
• B)Factoring with recourse negatively impacts the current ratio.
• C)Factoring without recourse negatively impacts the working capital ratio.
• D)Factoring without recourse creates a liability on the balance sheet.

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Definitions:

Fear-Provoking Situation

An event or circumstance that induces feelings of fear or anxiety.

Cognitive-Behavioral Therapy

A type of psychotherapeutic treatment that helps patients understand the thoughts and feelings that influence behaviors, aimed at changing negative patterns of thinking or behavior.

Obsessive-Compulsive Disorder

A mental disorder where people feel the need to check things repeatedly, perform certain routines repeatedly, or have certain thoughts repeatedly, leading to significant distress or impairment.

Phototherapy

Treatment for depressive disorder with seasonal pattern, informally called seasonal affective disorder (SAD), through which the client is exposed to high-intensity light each day.