Accounting for the Pledging of Accounts Receivable as Collateral for a Loan

question 116

Multiple Choice

Accounting for the pledging of accounts receivable as collateral for a loan requires:

• A) Reporting the receivables net of the borrowed amount.
• B) Removal of the pledged receivables from current assets and including them with noncurrent investments.
• C) Disclosure of the arrangement in notes to the financial statements.
• D) None of these answer choices are correct.

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Definitions:

Federal Government Expenditures

Federal government expenditures involve spending by the federal government on goods, services, and programs, including defense, healthcare, and education.

CAM Techniques

Complementary and Alternative Medicine techniques, a broad range of healing philosophies, approaches, and therapies that mainstream healthcare does not commonly use, accept, or make available.

Yoga

A physical, mental, and spiritual practice originating from ancient India, involving postures, breathing techniques, and meditation for health and relaxation.

Complementary Medicine

A group of therapeutic and diagnostic disciplines that are used together with conventional medicine, aiming to provide holistic care.