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:

Management Advice

Guidance or recommendations provided by experienced individuals aimed at improving organizational performance, processes, or decision-making.

Workplace Aggression

Behaviors in a work setting that are intended to harm or intimidate others, which can vary from verbal abuse to physical actions.

Bullying

Intentionally aggressive behavior repeated over time that involves an imbalance of power.

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, or other verbal or physical conduct of a sexual nature that affects an individual's employment or creates a hostile work environment.