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:

Powerful Groups

Collections of individuals who possess a disproportionate amount of social, economic, or political power within a society.

Indigenous Canadians

The First Nations, Métis, and Inuit peoples, who are the original inhabitants of the land that is now Canada.

Crime Rate

The number of reported crimes within a given population and specific time period, often used as an indicator of criminal activity levels in an area.

Labelling Theory

A sociological perspective asserting that labeling individuals or groups can lead to fulfillment of the label, affecting self-identity and behavior.