TRUE OR FALSE: IA RECEIVABLE FINANCING 22. If a customer's note is discounted without recourse, the carrying value of note receivable is eliminated from the seller’s book 23. Sale of receivable with resource means that the seller bears responsibility for the transferred asset if it turns out to be defective, and the buyer can seek recourse from the seller. 24. Under assignment as receivable financing approach, it is more specific because a single customer's account can be used as collateral for a loan the company is applying for.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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TRUE OR FALSE: IA RECEIVABLE FINANCING

22. If a customer's note is discounted without recourse, the carrying value of note receivable is eliminated from the seller’s book

23. Sale of receivable with resource means that the seller bears responsibility for the transferred asset if it turns out to be defective, and the buyer can seek recourse from the seller.

24. Under assignment as receivable financing approach, it is more specific because a single customer's account can be used as collateral for a loan the company is applying for.

 

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