Why Do Transferors of Receivables Generally Want to Account for the Transfer as a Sale?

Q: Why is consignment not a sale?

A: The companies derived revenue by selling goods or delivering services. The companies main objective…

Q: Which of the following is not a current asset? Inventory Trade receivables Building Cash at bank

A: Current Assets- are assets that can be converted into cash within one operating cycle i.e.,  assets…

Q: What is the difference between accounts payable andaccounts receivable?

A: Purchases means amount or value of goods that is purchased by the business. Cash for the purchases…

Q: How does account receivable work?

A: The term "account receivable" denotes that payment for previously completed work has yet to be…

Q: Why should an individual not use an installment sale as opposed to a cash sale?

A: Under the normal method of accounting cash is collected from sale of goods or services and…

Q: How does the Trade notes payable differ from accounts payable?

A: Difference: Accounts payable is a short-term liability that is owed by the supplier to the creditor…

Q: In bill of exchange the payment is received by

A: Option (d) is the correct answer

Q: Discuss the realization principle and how it is applied in the recognition of revenue. Does the…

A: Definition: The revenue recognition principle: The revenue recognition principle refers to the…

Q: What's the difference between accounts payable and receivable?

A: Accounts Payable is the current liability for the business and Accounts Receivable is a current…

Q: Define Sale of Receivables.

A: Sales: A sale refers to the operating activity through which the company earns income by selling…

Q: otal of trade receivables remaining

A:

Q: What is the accounts receivable turnover, and what typeof information does it provide?

A: Ratio analysis, horizontal analysis and vertical analysis are the analytical tools used by the…

Q: What is the nature of a “discount” on notes payable?

A: A discount on Notes payable is a contra liability account to the Notes payable account. When the…

Q: What does it mean for CHS to securitize its receivables?

A: Compensating balance: A compensating balance is a minimum amount of cash that must be maintained by…

Q: When is the financial components approach to recordingthe transfers of receivables used? When should…

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Q: What is the expense account associated with the cost of uncollectible receivables called?

A:

Q: rms: credit transfer, dishonoured cheque, standing order and give examples, the purposes, advantage

A: Credit transfer can refer to: The transfer of money from one account to another, also called a wire…

Q: What is the difference between an account receivable and a note receivable?

A: Receivable: It can be defined as the amount that is owed by the customers from the business.

Q: When should the transfer of receivables be recorded as a sale?

A: When a Note receivable is passed to a Transferor, the transferred value is separated from the…

Q: What is the primary difference between accounts receivable and notes receivable?

A: Receivable: Receivable refers to an amount to be received in future. General classifications of…

Q: What are receivables credits? Please explain.

A: Receivable refers to the assets of the company created due to sale of goods and service on credit to…

Q: How does account receivable work?

A: The term "account receivable" denotes that payment for previously completed work has yet to be…

Q: accrued income such as dividend receivable are normally classified as a. noncurrent trade…

A: Accrued income is the amount that is earned by the business entity but the amount has not been…

Q: Why might a business prefer a note receivable to an account receivable?

A: An account receivable is a simple promise to repay the seller done by customer which is due as a…

Q: why are accounts receivables inevitable? what advantage do selling on account offer?

A: The amount of money owing to a corporation by customers for goods or services previously provided is…

Q: Discuss the three types of lender control (Blanket Inventory Liens, Trust Receipts, and Warehousing)…

A: A lender is an entity that provides financial assistance to the another entity known as borrower who…

Q: What is the difference between accounts receivable and notes receivable?

A: Note receivable is the instrument that represents the amounts of money borrowed or receivables…

Q: What is the difference, definition, examples between account receivables and fees earned?

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: Define the term Accounts Receivable Turnover?

A: Accounts receivable turnover: This is the ratio which analyzes the number of times accounts…

Q: It is a receivable financing activity where the Entire Receivable's ownership is sold to the Factee…

A: Generally company makes credit sales and suffer the bad debts on some of the credit sales. To over…

Q: What is the difference between Accounts Receivable andRevenue?

A: Accounts receivables: Accounts receivables refers to the debtors that arise in case of credit sales…

Q: What is the amount of sales under cash basis?  What is the amount of purchases under cash basis?…

A: Solution Note : as per the Q&A guideline we are required to answer the first three subparts only…

Q: Why does Accounts receivable often are referred to as trade receivables?

A:

Q: Is note receivable a part of quick asset?

A: Note receivable: It refers to a written promise for the amounts to be received within a stipulated…

Q: How is Trade receivables turnover Ratio computed? What does it indicage?

A: Trade receivables: Trade receivables are the amounts which are billed by the business to its…

Q: When the accounts receivable are sold outright, the accounts receivable have been

A: Accounts receivable is a current asset for the firm which are created against the credit sales made…

Q: Which method, the percentage-of-receivables method or the percentage-of-credit-sales method, is…

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Q: What are the basic problems that occur in the valuationof accounts receivable?

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Q: What is a consignment arrangement? Explain the accounting treatment of goods held on consignment.

A: Goods on Consignment: When the goods are transferred by one company to another company for selling…

Q: uestion, the unilateral transfer is stated as a debit, but in the calculation for the answer, it is…

A: Balance of Payments is nothing but the record of the economic transactions of the residents of a…