Under International Accounting Standards,the Derecognition of Receivables Requires That

question 13

Multiple Choice

Under international accounting standards,the derecognition of receivables requires that

• A) the risks and rewards associated with the cash flows from the financial asset pass from the transferor to the transferee.
• B) a binding legal agreement must exist between the transferor and the transferee.
• C) economic ownership of the asset passes from the transferor to the transferee.
• D) the receivable is determined to be fully collectible.

---

Definitions:

Cumulative Costs

entail the total expenses incurred over time, considering all resources expended or lost, including indirect and direct costs.

Operations

The activities and processes designed to deliver a product or service effectively and efficiently.

Transnational Corporations

Large companies that operate in several countries around the world, often having a significant impact on global trade, economy, and politics.

Poor Countries

Nations with low levels of economic productivity, low standards of living, and often lacking in the basic infrastructure and services necessary for a high quality of life.