9.Factoring receivables(a)increases the costs relating to monitoring and collection of receivables.(b)removes all possibility of bad debts.(c)provides a source of immediate cash flow.(d)requires that the receivables be of high quality.

Page 310.When estimating the useful life of an asset, accountants do notconsider(a)the cost to replace the asset at the end of its useful life.(b)vulnerability to obsolescence.(c)expected repairs and maintenance.(d)the intended use of the asset.11.The diminishing-balance method of depreciation produces a(n) (a)decreasing depreciation expense each period.(b)increasing depreciation expense each period.(c)diminishing percentage rate each period.(d)constant amount of depreciation expense each period.12.Beynon Corp purchased office equipment for $20,000, with an estimated residual value of $4,000 at the end of its 8-year useful life. Assuming the double diminishing-balance method is used, the constant percentage to be applied against the carrying amount each year is(a)10%.(b)12.5%.(c)25%.(d)not determinable.