Question
Asked Nov 24, 2019
38 views

When should a transfer of receivables be recorded as a sale? 

A) The buyer surrenders controlof the receivables to the seller.

B) The transferor maintains effective control over the transferred assets through an agreement to repurchase or redeeem them prior to their maturity.

C) The transferee cannot pledge or exchange the transferred assets. 

D) The transferred asstes are isolated from the transferor.

check_circle

Expert Answer

Step 1

Option (d) is the correct a...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in
BusinessAccounting

Financial Accounting

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: Emely Comapny has been using the LIFO method of inventory valuation for 10 years since it began oper...

A: First-in-first-out (FIFO): As the name implies, the inventory bought first is used or transferred ou...

question_answer

Q: Vaughn Manufacturing took a physical inventory on December 31 and determined that goods costing $216...

A: A physical check of stock is a real tally of the considerable number of items that a business stock....

question_answer

Q: Define Working capital and gross capital.

A: Working capital:Working capital is the difference between the company’s current assets and current l...

question_answer

Q: I need help setting up the t-accounts.  I then have to do an unadjusted trial balance. I think I get...

A: Following are the Journal entries:

question_answer

Q: Optima Company is a high-technology organization that produces a mass-storage system. The design of ...

A: Cash Budget:Cash budget is an estimation of cash flows for a business over a specific period of time...

question_answer

Q: Sheridan Company's high and low level activity last year was 56000 units of product produced in May ...

A: Click to see the answer

question_answer

Q: Changes in Current Operating Assets and Liabilities—Indirect Method Mohammed Corporation's comparati...

A: Click to see the answer

question_answer

Q: Bartov Corporation reports the following beginning inventory and purchases for 2017Beginning invento...

A: Determine cost of goods sold and ending inventory under FIFO.

question_answer

Q: Bonita Industries purchased a new machine on May 1, 2012 for $561600. At the time of acquisition, th...

A: Calculate the loss recognized from the sale of machine: