Which of the Following Conditions Must Be Met by a Company

question 65

Multiple Choice

Which of the following conditions must be met by a company (the transferor) to record the transfer of accounts receivable for which it surrenders control to another company as a sale?

• A)The transferred assets have been isolated from the transferor (i.e., put beyond the reach of the transferor).
• B)The transferee obtains the right to exchange (e.g., sell)the transferred assets.
• C)The transferor does not maintain effective control over the transferred assets through an agreement that entitles and obligates the transferor to repurchase the transferred assets before their maturity.
• D)All of these conditions must be met.

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