On April 1 of the Current Year, Troubled Company Factored

question 66

Multiple Choice

On April 1 of the current year, Troubled Company factored receivables with a carrying value of $85,000 for $60,000 in cash from Scrooge Lenders. The transfer was made without recourse. On April 1, Troubled would:

• A) Credit deferred interest expense for $25,000.
• B) Credit factored accounts receivable for $85,000.
• C) Debit discount on liability for $25,000.
• D) Debit loss on sale of receivables for $25,000.

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Definitions:

Horizontal Décalage

A term from Piaget's theory of cognitive development, describing the variability in a child’s understanding and application of concepts across different situations.

Conservation

Understanding that physical properties do not change when appearance changes, crucial in cognitive development, repeating definition with emphasis on its role in cognitive science.

Preoperational Stage

A phase in Jean Piaget's cognitive development theory where children from ages 2 to 7 engage in symbolic play and struggle with logic and taking the perspective of others.

Three Mountains Task

A cognitive development test designed by Jean Piaget to assess children's ability to understand and appreciate different perspectives and viewpoints.