8. Which of the following is NOT one of the services provided by a factoring service?

a. Providing finance

b. Legal advice

c. Insurance against irrecoverable debts

d. Receivable ledger administration

10. One of the factors influencing terms of sale that explains the time it takes companies to sell goods is referred to as _________.

a. character of the goods

b. rate of inventory turnover

c. rate of receivable turnover

d. sales turnover

12. The granting of credit can ____________.

a. increase common stock equity

b. decrease depreciation expenses

c. decrease irrecoverable debt

d. increase sales or core business is to offer credit

18. Which of the following best describes the goal of a collection system that should not be too aggressive and too early?

a. Rehabilitate the customer

b. Retain customer goodwill

c. Reduce operating expenses and bad debt

d. Promote good communication with customers