Day: February 20, 2025

Which of the following services is least likely to be offered by a factoring company to its client?

Select ONE answer:

1. Provision of finance by advancing 80% of invoice value immediately, and the remainder on settlement of the debt by the client’s customer
2. Taking over responsibility for administration of the client’s sales ledger
3. Deciding what credit limits the client should give customers
4. Taking over responsibility for irrecoverable debts

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct == > Deciding what credit limits the client should give customers.
4. Not correct

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