In Managing Accounts Receivable, the Term 'Factoring' Relates To

question 21

Multiple Choice

In managing accounts receivable, the term 'factoring' relates to:

• A) ageing the receivables.
• B) calculating the amount of bad debts expense.
• C) the proportion of debts expected to become bad.
• D) selling the accounts receivable to a business that will then collect the debts.

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Definitions:

Increasing Scatter

A trend where data points spread out over a larger range, indicating higher variability in the data set.

Re-express

A statistical technique used to transform data in order to make its distribution more closely approximate the normal distribution, improving the interpretability or analysis.

Linear Relationship

A relationship between two variables where the change in one variable is directly proportional to the change in another variable.

Chocolate Consumed

The amount of chocolate intake by an individual or group over a specified period.