TB MC Qu$.7-120($Static$)$ If a company adopts an accounts receivable...

If a company adopts an accounts receivable factoring program, and accounts for the factoring as a sale of receivables, which of the

following is true in the period the company starts the program $($all else equal$)?$

Multiple Choice

The accounts receivable balance will increase.

Cash flow from operations may increase.

A retroactive restatement is necessary due to a change in accounting principle.