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Fresh Foods Needs Some Quick Cash to Pay Some Overdue

Question 80

Multiple Choice

Fresh Foods needs some quick cash to pay some overdue bills.If the following facts were known,which one would support the idea of factoring to obtain the cash?


A) Factoring can be a costly way to obtain cash.
B) The company would not have to liquidate any of its core assets if it chooses factoring.
C) The company's customers might be unhappy if they hear that their account has been turned over to a factor.
D) The company would incur additional accounting expenses because they would have to keep track of the factored customer accounts.
E) Factoring companies usually aren't interested in receivables more than 90 days old.

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