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.

---

Definitions:

Childhood Abuse

Experiencing physical, emotional, sexual, or neglectful harm during childhood, which can have long-lasting effects on mental and physical health.

Empathic Response

A reaction that demonstrates an understanding and sharing of another's emotional experience.

Additive Empathic Responses

Empathetic reactions that not only understand and share the feelings of others but also add further insight or support.

Early Sessions

The initial meetings or periods of activity in a process such as therapy, training, or consultation.