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Companies may decide to sell, factor or transfer accounts receivable for a number of different reasons. Which of the following statements is NOT a valid

Companies may decide to sell, factor or transfer accounts receivable for a number of different reasons. Which of the following statements is NOT a valid reason for a company to sell their accounts receivable?

Need cash immediately for expansion.

Billing and collection are time-consuming and costly.

The company does not believe that the customers will pay their balances owed in full.

Competition drives the need for cash in place of the receivables.

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