Question: When pledging accounts receivable the pledges are usually made with recourse. title to the receivables reverts to the lender. collection responsibility reverts to the lender.

When pledging accounts receivable
the pledges are usually madewith recourse.
title to the receivables reverts to the lender.
collection responsibility reverts to the lender.
the pledge arrangements become the new valuation methodology entered in the accounting records.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Fong Sai-Yuk Company sells one product. Presented below is information for January for Fong Sai-Yuk Company. Jan. 2 Inventory 100 units at ... $5 each 4 Sale 80 units at ....... $8 each 11 Purchase...

Q:

When pledging accounts receivable, a . collection responsibility reverts to the lender. b . the pledge arrangements become the new valuation methodology entered in the accounting records. c . title...

Q:

QUESTION 1 Compensating balance agreements that legally restrict cash should only be described in the footnotes to the financial statements be separately reported in the current assets portion of the...

Q:

Show solution 1. How to generate cash from the receivables without collecting them? a. Sell the receivables. b. Use the receivables as collateral. c. Either a or b. d. Neither a nor b. 2. Why would a...

Q:

1. How to generate cash from the receivables without collecting them? a. Sell the receivables. b. Use the receivables as collateral. c. Either a or b. d. Neither a nor b. 2. Why would a company sell...

Q:

from pages 5-39 of Stanford's Health Care Report- any particular point that feel may be relevant or interesting in regards to financial status current or future for Stanford. Has to be least 200...

Q:

Using the Stanford Health Care Consolidated Financial Statements for 2014 ( pages 1-4 ), prepare a brief summary (3 -4 paragraphs) that highlights the current financial status of Stanford and any...

Q:

It is becoming widely expected that interest rates will rise in the coming year. In recent weeks the 10 year US bond has risen from about 1.50% to 1.80%. Using the appendix for chapter 2 on Webster...

Q:

please help me. I can pay only 70 dollars in this assignment Topic 1 & 2 Introduction to financial management and the Australian Taxation system Financial Markets 2 Learning Objectives Describe what...

Q:

please help me in 70 dollars to do this assignment iin APA style referencing Topic 1 & 2 Introduction to financial management and the Australian Taxation system Financial Markets 2 Learning...

Q:

Accounts receivable loans can be obtained by either pledging or factoring receivables. In the case of a pledging arrangement, the firm retains title to the receivables, and the lender advances funds...

Q:

Under Armour currently buys its apparel from a manufacturer in China. A representative from a company in Bangladesh is offering to sell them for 20% less than cost from the manufacturer in China....

Q:

A consumer welfare agency wants to investigate the relationship between the sizes of houses and rents paid by tenants in a small city. The agency collected the following information on the sizes...

Q:

E4.1 A digital audio system is designed to minimize the effect of disturbances as shown in Figure E4.1. As an approximation, we may represent G1s2 = K2. (a) Calculate the sensitivity of the system...

Q:

Hugo decides to buy his Christmas gifts on Black Friday. To simplify his life, he is giving his 10 closest friends scarves for Christmas and everyone else Christmas cards. Hugo is willing to pay up...