In a Factoring of Accounts Receivable Without Recourse, Which Party

question 105

Multiple Choice

In a factoring of accounts receivable without recourse, which party bears (indicated by * in the answer alternatives) the cost of bad debts and sales adjustments? $$\begin{array} { | l | l | l | l | } \hline &\text { } & \text {bad depts} &\text {sales adjuistments} \\\hline 1&\text { transferor } & *& * \\\hline 2 &\text { factor } &* & \\\hline &\text { transferor } & & * \\\hline 3& \text { factor } & * & \\\hline& \text { transferor} & *& \\\hline 4 &\text { factor } & *\\\hline\end{array}$$

• A) Choice 1
• B) Choice 2
• C) Choice 3
• D) Choice 4

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Definitions:

Emotional Display Rule

Unstated cultural guidelines for acceptable emotions and emotional expression that are communicated to children via parents’ emotional behavior, expressions, and socialization.

Difficult Temperament

A personality trait characterized by high levels of irritability, difficulty in adapting to change, and intense emotional reactions.

Irritable

Experiencing or showing a tendency to be easily annoyed or made angry.

Stranger Wariness

A developmental phase in infants and young children where they become cautious and sometimes fearful around unfamiliar people.