FASB Has Set Forth All of the Following Conditions for Recognizing

question 44

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:

Expected Counts

In statistics, the predicted number of times an event is to occur in a study or experiment based on probability.

Cell Counts

Cell counts refer to the process of counting the number of cells in a given volume, commonly used in biology and medicine to assess cell concentration or density.

SPSS Output

The results and summaries generated by SPSS (Statistical Package for the Social Sciences), a software used for statistical analysis.

Expected Count

The forecasted frequency of occurrences in a category of a contingency table, based on probabilities derived from distribution assumptions.