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:

Objective and Task

A marketing budgeting method where specific objectives set the tasks and activities to achieve them, determining the required budget.

Competitive Parity

A strategy where a company sets its prices or budgets equivalent to its competitors to avoid price wars and stabilize market share.

Percentage of Sales

A financial metric that compares a particular figure or expense to the total sales of a company, typically used to assess the financial health or efficiency of business operations.

All You Can Afford

This is a budgeting approach where advertising spending is based on the amount of funds a company has available, rather than being tied to specific performance objectives.