Crazy Foods, Inc

question 196

Multiple Choice

Crazy Foods, Inc., factors its receivables to Shady Factoring Company. The effect of this transaction is:

• A) Shady Factoring will earn revenue on the transaction.
• B) Crazy Foods will retain control over the receivables.
• C) Shady Factoring will recognize a factoring expense on the transaction.
• D) Crazy Foods will receive cash equal to the face value of the receivables.

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