With regard restricted cash, all the following statement are correct except OA It is a cash set aside for a particular purpose. OIt is classified as bank overdraft. Ocifit is not material companies do not separate them from cash in the financial statements. OWhen it is material in amount companies separate restricted cash from regular cash. The due from factor account is classified as: OA Equity CORevenue OCAsset OLiability If receivable sold with no recourse the factor financing charge is considered as: OALoss Os Interest expense Oc Due from factor Oo Interest revenue

With regard restricted cash, all the following statement are correct except OA It is a cash set aside for a particular purpose. OIt is classified as bank overdraft. Ocifit is not material companies do not separate them from cash in the financial statements. OWhen it is material in amount companies separate restricted cash from regular cash. The due from factor account is classified as: OA Equity CORevenue OCAsset OLiability If receivable sold with no recourse the factor financing charge is considered as: OALoss Os Interest expense Oc Due from factor Oo Interest revenue

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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