When a Firm (Assignor) Assigns Part of Its Accounts Receivable

question 15

Multiple Choice

When a firm (assignor) assigns part of its accounts receivable as collateral for a loan:

• A) The assignor relinquishes control over the receivables
• B) The transaction is essentially the same as factoring without recourse
• C) The assigned accounts are reclassified as a separate account within total accounts receivable
• D) The loan is offset against the assigned accounts receivable in the assignor's balance sheet

---

Definitions:

Intrauterine Growth Restriction

A condition where a fetus does not grow at the expected rate during pregnancy.

Gestational Age

The amount of time between conception and birth. The normal gestational age is between 37 and 43 weeks.

Father's Diet

The nutritional and eating habits of a father, which can impact his health as well as the health and genetic expression of his offspring.

Socioeconomic Status

An individual or group's position within a hierarchical social structure, determined by income, education, occupation, and other factors.