Which of the following is true when accounts receivable are factored without recourse? a. The transaction may be accounted for either as a secured borrowing or as a sale, depending upon the substance of the transaction. b. The receivables are used as collateral for a promissory note issued to the factor by the owner of the receivables. c. The factor assumes the risk of collectibility and absorbs any credit losses in collecting the receivables. d. The financing cost (interest expense) should be recognized ratably over the collection period of the receivables.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Which of the following is true when accounts receivable are factored without recourse? a. The transaction may be accounted for either as a ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Checkable deposits are money because A. checks bounce when there are not enough funds to cash them. B. they are guaranteed by banks. C. only banks and other financial institutions can offer them. D. they are protected by the Federal Reserve. E.
Answers (1)
Which of the following groups on the Home tab contain commands to format text as a bulleted or numbered list? Clipboard Font Paragraph Styles
Answers (1)
A pathway prepares a person for
Answers (1)
Jones hired Smith, a general contractor, to build a garage as an addition to Jones' home. Smith hired Adams, a subcontractor, to do the roofing work on this garage.
Answers (2)
A company purchased $8,500 worth of merchandise. Transportation costs were an additional $50. The company later returned $800 worth of merchandise and paid the invoice within the 3% cash discount period.
Answers (1)
New Questions in Business
Macrosoft Company reports net income of $65,000. The accounting records reveal depreciation expense of $80,000 as well as increases in prepaid rent, accounts payable, and income tax payable of $60,000, $12,000, and $18,000, respectively.
No Answers
Hornberger, Inc. recently paid a dividend of $2.00 per share. The next dividend is expected to be $2.05 per share. Hornberger has a return on equity of 11.00%. What percentage of its earnings does Hornberger plow back into the firm?
Answers (1)
A tip of $10 is best for which kind of service? A. a mover who delivers furniture to your new home B. a valet who parks your car at a restaurant C. a waiter at a fast-food restaurant
Answers (2)
Sunland Company manufactures and sells high-priced motorcycles. The Engine Division produces and sells engines to other motorcycle companies and internally to the Production Division.
Answers (1)
Adamson Company manufactures four lines of garden tools. As a result of an activity analysis, the accounting department has identified eight activity cost pools.
Answers (1)