Factoring Receivables Is Beneficial to a Seller for All of the Following

Multiple Choice

Factoring receivables is beneficial to a seller for all of the following reasons except:

A) There are no fees for factoring.
B) Passes ownership of the receivables to the factor.
C) Allows firms to receive cash earlier.
D) May transfer the risk of bad debts to the factor.
E) Seller avoids the cost of billing and accounting for receivables.