Receivables can be used to generate cash through two general categories of transactions:
1.A secured borrowing
2.A sale of the receivables.
Both of these types of transactions require a transfer of the receivables to a new holder,typically a financial institution.
Required:
Distinguish between a secured borrowing and a sale of receivables as regards the rights of the transferor and transferee as well as regards the accounting for each type of transaction.

Question

Quizplus · Accepted Answer

The Answer of Receivables can be used to generate cash through two general categories of transactions:
1.A secured borrowing
2.A sale of the receivables.
Both of these types of transactions require a transfer of the receivables to a new holder,typically a financial institution.
Required:
Distinguish between a secured borrowing and a sale of receivables as regards the rights of the transferor and transferee as well as regards the accounting for each type of transaction.

Receivables Can Be Used to Generate Cash Through Two General