Under US GAAP, Which of the Following Would Be Included in in the Journal

question 128

Multiple Choice

Under U.S. GAAP, which of the following would be included in the journal entry to record the sale of receivables to a factor without recourse?

• A) debit Accounts Receivable
• B) debit Loss on Sale of Receivables
• C) credit Cash
• D) credit Receivable from Factor

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Definitions:

Investment Opportunity

A situation, asset, or project that promises future financial returns, involving potential for profit as well as risk of loss.

Deal

An agreement or an arrangement, often in a business context, that specifies terms between parties for transactions, collaborations, or partnerships.

Entrepreneurs

Individuals who organize and operate businesses, taking on greater than normal financial risks in order to do so.

3 Fs

often refers to the informal investors in early-stage startups: friends, family, and fools, who provide initial capital.