If the Transferor of Accounts Receivable Cannot Meet All Conditions

question 47

Multiple Choice

If the transferor of accounts receivable cannot meet all conditions for a sale, the transferor records the proceeds received as a debit to Cash and records a corresponding credit to a(n)

• A)deferred revenue account
• B)deferred credit account
• C)liability account
• D)asset account

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Definitions:

Variance

A measure of variability that quantifies the spread of a set of data points around the mean.

Confidence Level

The probability or degree of certainty that a confidence interval would contain the true population parameter if the same procedure were repeated multiple times.

Confidence Interval

A range of values, derived from sample statistics, that is believed to contain the true population parameter with a specified level of confidence.

Population Parameter

A numerical value summarizing the whole population.