Which of the Following Would Occur If a Company Factored

question 74

Multiple Choice

Which of the following would occur if a company factored $2,500,000 of receivables with a 2% fee?

• A) a $2,450,000 credit to cash
• B) a $50,000 debit to factoring fee expense
• C) a $2,500,000 debit to accounts receivable
• D) a $50,000 debit to factoring fee receivable

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Definitions:

Climacteric

A phase in the aging process of humans, marked by hormonal changes that occur in women (menopause) and may occur in men (andropause).

Stagnation

A period of inactivity or lack of growth and development, often used in psychological contexts to describe individuals who fail to achieve their desired future.

Burnout

A state of physical, emotional, and mental exhaustion caused by prolonged stress, often resulting from occupational overwork.

Timing-of-Events Model

A statistical method used to examine the timing or sequence of particular events and their impacts on future outcomes.