1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
vlabodo [156]
3 years ago
13

If a company adopts an accounts receivable factoring program, and accounts for the factoring as a sale of receivables, which of

the following is true in the period the company starts the program (all else equal)? A. The factoring arrangement needs to be with a consolidated entity to qualify for sale accounting. B. The accounts receivable balance will increase. C. Cash flow from operations may increase. D. A retroactive restatement is necessary due to a change in accounting principle.
Business
1 answer:
horsena [70]3 years ago
4 0

Answer:C. cash flow from operations may increase

Explanation:

A factoring system is one in which a firm sell his right to receive payments on it's receivable to a firm referred to as the factor as a discount in which the amount of discount represents the factor fees for taking up the risk.

The factor may be with or without recourse to the firm selling the receivable.

It's mostly entered into to reduce payment defaults and increase inflow of cash for operations.

The factor company does not need to be a consolidated company,it usually reduce the receivable and does not require a change in accounting principles.

You might be interested in
If an organizational manual exists, a description of the division of work and the position shown on the organization chart will
allsm [11]
If an organizational manual exists, a description of the division of work and the position shown on the organization chart will be given in the manual or will be located on the company's intranet.

A) True
7 0
3 years ago
Lomani Ltd acquired two new machines for cash on 1 January 2017. The cost of machine A was $400 000, plus GST, and of machine B,
PolarNik [594]

Answer:

Explanation:هاي

7 0
3 years ago
Which player in the economy supplies labor in the factor market?
djyliett [7]

The player in the economy that supplies labor in the factor market is households.

Economists refer to all of the resources that firms utilize to buy, rent, or hire the equipment they use to generate goods or services as the "factor market."

The factors of production—raw materials, land, labor, and capital—are what are required to meet these needs.

The input market is another name for the factor market.

By this definition, all markets fall into one of two categories: those that provide businesses with the resources they require, or those that provide consumers with the goods and services they need to make purchases.

The market for finished goods or services is referred to as an output market, whereas a factor market is referred to as an input market.

This can be seen as a closed-loop flow where households are sellers and businesses are buyers in the factor market and vice versa in the market for goods and services.

Hence, The player in the economy that supplies labor in the factor market is households.

Learn more about supply:

brainly.com/question/4804206

#SPJ1

5 0
2 years ago
Classify each of the statements as true or false.
Tasya [4]

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

7 0
3 years ago
Select all that apply
ANTONII [103]

Answer:

Go to your financial institution

Endorse the check and return it to whoever gave it to you

4 0
2 years ago
Other questions:
  • What type of supply chain configuration is most appropriate if your organization needs to minimize inbound transportation costs,
    5·1 answer
  • Sunland Company just began business and made the following four inventory purchases in June: June 1 144 units $1000 June 10 192
    15·1 answer
  • Paladin Furnishings generated $4 million in sales during 2016, and its year-end total assets were $2.6 million. Also, at year-en
    11·1 answer
  • What is anomie? What effects does it have?
    15·1 answer
  • In the month of March the Digby Corporation received and delivered orders of 189,000 units at a price of $15.00 for revenue of $
    15·1 answer
  • . What happens if you don't pay your insurance premium for your car?
    12·1 answer
  • Karen Meyer owns and operates Crystal Cleaning Company. Recently, Meyer withdrew $10,000 from Crystal Cleaning, and she contribu
    5·1 answer
  • DeBeers is an example of a government monopoly. True or False?
    14·1 answer
  • Trespass to land is committed if, without the permission of the property owner, a person
    15·1 answer
  • What is the role of debt is the pecking order theory of capital structure? How does it differ under the stulz (1990) model?
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!