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:

Rehabilitative Approach

A method focused on rehabilitating offenders rather than solely punishing them, aiming to prevent future crimes.

Inmate Rehabilitation

The process of reeducating and retraining prisoners with the goal of reintegrating them into society as law-abiding citizens, often involving vocational training, education, and psychological counseling.

Value Equilibrium

A conceptual state where differing values or interests reach a balance or harmony.

Just Punishment

Punishment deemed fair and appropriate for the crime committed, considering both the act and its consequences.