Which of the Following Statements Concerning the Factoring of Accounts

question 18

Multiple Choice

Which of the following statements concerning the factoring of accounts receivable is true?

• A) A disadvantage of factoring can be its high cost.
• B) Credit cards are a form of factoring (i.e. the credit card firm specialises in the collection of accounts receivable).
• C) A typical journal entry to record the sale of accounts receivable is DR Bank; DR Service charge expense; CR Accounts receivable control.
• D) All of the above options are true.

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Definitions:

Steady State

A condition in which all aspects of a system are in equilibrium or unchanging over time, often used in physics and economics to describe stable systems.

William McDougall

An influential psychologist known for his work on social psychology, including the concept of the group mind and the role of instinct in human behavior.

Psychoanalytic Theory

A set of theories originated by Sigmund Freud, which focus on the unconscious mind and childhood experiences as determinants of an individual's psychological state and behavior.

Instinct Approaches

A perspective in psychology that suggests human and animal behaviors are innate and driven by evolutionary pressures.