Under US GAAP, Which of the Following Would Be Included in in the Journal

question 128

Multiple Choice

Under U.S. GAAP, which of the following would be included in the journal entry to record the sale of receivables to a factor without recourse?

• A) debit Accounts Receivable
• B) debit Loss on Sale of Receivables
• C) credit Cash
• D) credit Receivable from Factor

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Definitions:

Market Efficiency

A condition in which market prices fully reflect all available information and assets are priced accordingly.

Price Ceiling

A government-imposed limit on how high a price can be charged on a product or service, typically set below the equilibrium price to make goods more affordable.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price over a specified period.

Quantity Supplied

The amount of a good or service that sellers are willing and able to sell at a particular price over a specified period.