Firms such as Deere & Company and Macys, Inc., often sell their receivables as a means of
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Firms such as Deere & Company and Macy’s, Inc., often sell their receivables as a means of obtaining financing. Should firms selling receivables remove the receivables from the balance sheet, or should the receivables remain on the balance sheet? Should the firms recognize a liability in the amount of the cash received for the receivables? Describe the applicable criteria to determine whether the transfer of receivables can be recorded as a sale.
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Contingent obligations may or may not give rise to accounting liabilities Financial ...View the full answer
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Financial reporting, financial statement analysis and valuation a strategic perspective
ISBN: 978-0324789416
7th Edition
Authors: James M Wahlen, Stephen P Baginskl, Mark T Bradshaw
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