Question: When is the financial components approach to recording the transfers of receivables used? When should a transfer of receivables be recorded as a sale?

When is the financial components approach to recording the transfers of receivables used? When should a transfer of receivables be recorded as a sale?

Step by Step Solution

★★★★★

3.34 Rating (172 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

A financial components approach is used when receivables are sold but there ... View full answer

Question Has Been Solved by an Expert!

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

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

11-B-A-C-R (14).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

7.1 You are a manager at a perfectly competitive firm like Scotch Plywood Company. The price of a sheet of plywood is $30. The marginal cost of producing plywood has a random element. The following...

When should the book value approach be used for recording capital asset exchanges?

When should sketches be made instead of just recording data?

When should insurance products be used in a project finance deal? a) Due to the contractual structure of project finance, there's no need for insurance because risks are allocated among various...

18. When is the risks and rewards approach to recording the transfers of receivables used? When should a transfer of receivables be recorded as a sale?

When is the risks and rewards approach to recording the transfers of receivables used? When should a transfer of receivables be recorded as a sale?

Hi Katrina, I have another accounting problem I need your help with. It's similar to the one you did on 4/4/2016. The due date for this one will be 4/10/2016, Will you be able to help? See below...

hello, need help with a accounting quiz I have attached: 1) quiz 2)pdf files CH. 18- CH 21 Chapter 18 \"Managerial Accounting Concepts/Job Costing\" from Accounting Principles: A Business...

Review the income statement. What was recorded as discontinued operations for the most recent fiscal year? What was managements explanation for this amount? What is the functional currency of the...

uestion: 1. IN A STOCK ACQUISITION ACCOUNTED FOR BY THE EQUITY METHOD, A PORTION OF THE PURCHASE PRICE OFTEN IS ATTRIBUTABLE TO GOODWILL OR TO SPECIFIC ASSETS OR LIABILITIES. HOW OR UNDER WHAT BASIS...

Ferulic acid is a compound that may play a role in disease resistance in corn. A botanist measured the concentration of soluble ferulic acid in corn seedlings grown in the dark or in a light/dark...

Find the probability that the claim will be rejected assuming that the manufacturers claim is true. A drug manufacturer claims that a drug cures a rare skin disease 75% of the time. The claim is...

What do you think is the relationship that exist between an influencer and principles of Marketing?

Review the logic of Grupo Salinas 2009 divisional and business unit structure. What issues arise and can you propose a better structure?

In July of 2016, Sue enters into a forward agreement with Ann to lock in a sales price for wheat. Sue anticipates selling 300,000 bushels of wheat at the market in March of 2017. Ann agrees to a...

Akers Company sold bonds on July 1, 2014, with a face value of $100,000. These bonds are due in 10 years. The stated annual interest rate is 6% per year, payable semiannually on June 30 and December...

What is the concept underlying the current rate method of translation? What is the concept underlying the temporal method of translation? How does balance sheet exposure differ under these two...

Ken (age 31) and Amy (age 28) Booth have brought you the following information regarding their income, expenses, and withholding for the year. They are unsure which of these items must be used to...

What are the choices that managers of Maybach are faced with according to this analysis?

Distinguish among the following: (1) a general checking account, (2) an imprest bank account, and (3) a lockbox account.

What are the general rules for measuring and recognizing gain or loss by both the debtor and the creditor in an impairment?

Identify which basic principle of accounting is best described in each item below. (a) Norfolk Southern Corporation reports revenue in its income statement when it is earned instead of when the cash...

Presented below are three different transactions related to materiality. Explain whether you would classify these transactions as material. (a) Marcus Co. has reported a positive trend in earnings...

If the going concern assumption is not made in accounting, what difference does it make in the amounts shown in the financial statements for the following items? (a) Land. (b) Unamortized bond...

HW_08 Consider the applications for home mortgages data in the file of P12_04.xlsx. Create a time series chart of the data. Use simple exponential smoothing to forecast these data, using the default...