The Untrue Statement Concerning the Factoring of Accounts Receivable Is

question 42

Multiple Choice

The untrue statement concerning the factoring of accounts receivable is which of the following?

• A) Businesses rarely factor their accounts receivable.
• B) A disadvantage of factoring can be its high cost.
• C) Credit cards are a form of factoring (i.e. the credit card firm specialises in the collection of accounts receivable).
• D) A typical journal entry to record the sale of accounts receivable is Dr bank; Dr factoring charge expense; Cr accounts receivable control.

Understand the implications of financial decision-making on company divisions.

Analyze the relationship between sales, operating expenses, and net operating income on overall performance.

Understand the ramifications of investment decisions on divisional performance.

Understand the concept of Return on Investment (ROI) and how it is calculated.

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Definitions:

ISO 14005

A part of the ISO 14000 family of standards related to environmental management that guides the phased implementation of an environmental management system.

Environmental Performance Indicators

Metrics used to assess and communicate the environmental performance of an organization, focusing on areas such as emissions, resource use, and waste management.

Community Satisfaction Indicators

Metrics used to measure the happiness or contentment of a community's population with their living conditions or local facilities.

Strategic Decisions

Long-term choices made by a company's top management that affect the entire organization and are based on a thorough analysis of internal and external factors.