When Receivables Are Factored with Recourse and Recorded as a Sale

question 81

Multiple Choice

When receivables are factored with recourse and recorded as a sale, the transferor generally:

• A) Recognizes the cost of the transfer over the term of the related loan.
• B) Recognizes an immediate loss or expense and removes the receivables from the books.
• C) Records a payable to factor for expected sales adjustments.
• D) Does not record sales adjustments on the factored receivables.

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Definitions:

Pressure Reduction

Strategies or devices used to alleviate pressure on specific areas of the body, often to prevent pressure ulcers or enhance comfort.

Patient Movement

The process of transferring patients from one location to another within or between medical facilities, often involving specialized equipment and protocols to ensure safety.

Pressure Relief

Methods or devices used to alleviate pressure in a specific area, often to prevent or treat pressure sores in patients who are immobile.

Pressure Ulcer Formation

The development of injuries to the skin and underlying tissue caused by prolonged pressure on the skin, commonly affecting bedridden or immobile patients.