Which of the following statement is correct? if the note is issued at a premium the interest income to be recognized every period is

a.Either higher or lower than the amount of cash received for interest depending on the amount of the discount

b.Lower than the amount of cash received for interest

c.Higher than the amount of cash received for interest

d.Equal to the amount of cash received for interest

Which of the following is the primary reason why a company sell its receivables to another entity?

a.to accelerate access to amounts collected

b.to improve the quality of its credit granting process

c.to comply with customer agreements

d.to limit its legal liability