Which Uses a Combination Approach in Recording a Factoring Transaction $\begin{array} { c c } & \text { GAAP } & \text { IFRS } \\\end{array}$

question 214

Short Answer

Which uses a combination approach in recording a factoring transaction? $\begin{array} { c c } & \text { GAAP } & \text { IFRS } \\\end{array}$
A) $\begin{array} { c c } & \text { yes } & &\text { no } \\\end{array}$
B) $\begin{array} { c c } & \text { yes } && \text { yes } \\\end{array}$
C) $\begin{array} { c c } & \text { no } && \text { no } \\\end{array}$
D) $\begin{array} { c c } & \text { no } && \text { yes }\end{array}$

• A) \(\begin{array} { c c } & \text { yes } & &\text { no } \\\end{array}\)
• B)\(\begin{array} { c c } & \text { yes } && \text { yes } \\\end{array}\)
• C) \(\begin{array} { c c } & \text { no } && \text { no } \\\end{array}\)
• D) \(\begin{array} { c c } & \text { no } && \text { yes }
• \end{array}\)

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Definitions:

Market Price

The amount of money a buyer is willing to pay for a good or service in a competitive marketplace.

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.

Common Stock

A type of equity ownership in a corporation, representing a claim on part of the company's profits and assets.

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, indicating the dollar amount investors will pay for $1 of earnings.