A Company That Factors Its Receivables Will Have a Less

question 28

True/False

A company that factors its receivables will have a less favorable receivable turnover than a company that does not factor.

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Definitions:

Preferred Stock

A security that entitles the holder to payment of fixed dividends and that has priority over common stock in the distribution of assets on the corporation’s dissolution.

Common Stock

A type of equity security that represents ownership in a corporation, with holders usually having a right to vote on corporate matters.

Payment Of Dividends

The distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Managerial Employees

Employees who are responsible for directing and controlling the operations of a business or its subdivisions.