Which Statement Is Not Correct

question 43

Multiple Choice

Which statement is not correct?

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

Analyze the relevance of the market portfolio, including its properties and composition.

Differentiate between the Capital Market Line (CML) and the Security Market Line (SML).

Understand the basics and the necessity of consolidation adjustments in intra-group transactions.

Identify and apply the correct tax effect entry for consolidation purposes.

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Definitions:

Festinger and Carlsmith

Researchers known for their 1959 cognitive dissonance experiment, which investigated the effects of forced compliance behavior on changing attitudes.

Attitude Change

The process in which an individual's feelings, beliefs, or behavior towards a particular entity or topic shifts over time.

Paid for Lying

The act of receiving compensation or reward in exchange for deceit or delivering false statements.

Operant Conditioning

Operant Conditioning refers to a method of learning in which the likelihood of a behavior's occurrence is altered through rewards or penalties.