Which of the following is a CORRECT statement regarding methods to speed up the collection of cash from receivables?
A) Factoring is used frequently by companies since it is an inexpensive way to raise cash.
B) Credit card companies will charge a fee of 20-30% of the total amount of the sale.
C) The company that factors its receivables maintains control over the collection process.
D) The Credit Card Discount Expense is reported on the income statement.
Correct Answer:
Verified
Q126: Ratios are used only by company management,and
Q140: A measure of the ability of an
Q144: Accepting credit cards can increase revenue for
Q156: When a company factors its receivables, accounts
Q161: A company has $23,000 in cash and
Q162: Bird's Nest had net credit sales for
Q163: Selling accounts receivable typically:
A)decreases total assets and
Q163: Days' sales in receivables tells a company
Q164: Robin's Nest had net credit sales for
Q180: Factoring accounts receivable is used by:
A)start-up companies.
B)companies
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents