Pledged receivables are reported as current assets while assigned receivables are reported as non-current assets. The pledged and assigned receivables are used as collateral for a long-term obligation.

Question

Quizplus · Accepted Answer

Pledged and assigned receivables are typically reported as current assets if they are expected to be collected within one year, regardless of their use as collateral for long-term obligations.

Pledged Receivables Are Reported as Current Assets While Assigned Receivables