When a Company Transfers Receivables with Recourse

question 50

Multiple Choice

When a company transfers receivables with recourse

• A)GAAP requires note disclosure of the contingent liability.
• B)the transferee is responsible for uncollected receivables.
• C)there is no contingent liability so no disclosure is required.
• D)the transfer may be reported in a variety of ways as GAAP provides no specific reporting guidance related to such transactions.

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Definitions:

Cerebellar Glia

Non-neuronal cells in the cerebellum, part of the brain, that support and protect neurons, playing a critical role in brain function.

Formed An Attachment

The development of a close emotional bond between individuals, such as between a child and caregiver, influencing social and emotional development.

Parental Figure

An adult who assumes the role of a parent in a child's life, which can include biological parents, adoptive parents, and other caregivers.

Pleasure

A feeling of happiness or satisfaction derived from experiences that are enjoyable or fulfilling.