FASB Has Set Forth All of the Following Conditions for Recognizing

question 38

Multiple Choice

FASB has set forth all of the following conditions for recognizing transfers of receivables as sales only if the following conditions of surrendering control of the receivables are met except :

• A) The assets transferred have been isolated from the selling firm.
• B) The buying firm obtains the right to pledge or exchange the transferred assets, and no condition both constrains the transferee from taking advantage of its right and provides more than a trivial benefit to the transferor.
• C) The selling firm does not maintain effective control over the assets transferred through (a) an agreement that both entitles and obligates it to repurchase the assets or (b) the ability to unilaterally cause the transferee to return specific assets.
• D) A creditor of the selling firm can access the receivables in the event of the seller's bankruptcy.

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Definitions:

Facial Bones

The bones that structure the human face, including the jaw, cheekbones, nasal bones, and forehead.

Permanent Teeth

The set of teeth that replace primary (baby) teeth and are intended to last throughout an individual's lifetime.

Physical Activity

Any body movement produced by skeletal muscles that requires energy expenditure, including exercise and activities undertaken while working, playing, or doing household chores.

Nutritional Consumption

The intake and use of nutrients by the body from food and supplements for health and growth.