When Platinum Fitness Sells Its Accounts Receivable to a Financial

Multiple Choice

When Platinum Fitness sells its accounts receivable to a financial institution, it receives less than the full value of the accounts receivable. Which of the following is a benefit Platinum Fitness receives from this arrangement?

A) It will receive the money in one month instead of two months.
B) It will have more inventory than its competitors.
C) This will allow closer relationships with its customers.
D) The time and expense of collecting accounts shifts to the factor.
E) Platinum will be responsible for collecting the accounts.