Which of the Following Conditions Must Be Met by a Company

question 65

Multiple Choice

Which of the following conditions must be met by a company (the transferor) to record the transfer of accounts receivable for which it surrenders control to another company as a sale?

• A)The transferred assets have been isolated from the transferor (i.e., put beyond the reach of the transferor).
• B)The transferee obtains the right to exchange (e.g., sell)the transferred assets.
• C)The transferor does not maintain effective control over the transferred assets through an agreement that entitles and obligates the transferor to repurchase the transferred assets before their maturity.
• D)All of these conditions must be met.

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Definitions:

Equal and Opposite Reaction

Newton's third law of motion, which states that for every action, there is an equal and opposite reaction.

Two-World Hypothesis

A philosophical or theoretical postulate suggesting the existence of two distinct realms or worlds, often used to differentiate between the physical and the non-physical (e.g., the material and the spiritual or the ideal).

Skepticism

An attitude of doubt towards claims lacking empirical evidence or inherent plausibility, often requiring critical thinking and questioning before acceptance.

Kant

Immanuel Kant was a German philosopher who is a central figure in modern philosophy and is known for his contributions to epistemology, ethics, and aesthetics.