When Accounts Receivable Are Factored with Recourse and Are Accounted

question 69

Multiple Choice

When accounts receivable are factored with recourse and are accounted for as a sale, what account does the transferor credit?

• A) Accounts receivable
• B) Sales
• C) Liability
• D) Accounts receivable assigned

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Definitions:

Unlimited Wants

The economic principle that humans have infinite desires or wants but limited resources to fulfill them.

Scarce

Denotes the fundamental economic problem of having seemingly unlimited human wants in a world of limited resources, which necessitates prioritization of resource allocation.

Choices

Decisions made by individuals or organizations among two or more alternatives.

Rational Government

The concept of a government acting based on reasoned decisions, typically aiming for the most economically efficient outcomes that maximize social welfare.