Which of the following is not a requirement for recognizing that a transaction can be recorded as a sale of receivables?
A) The factor discounts the amount remitted to the seller.
B) The selling company does not maintain effective control over the receivables.
C) The factor has the ability to pledge the receivables.
D) The receivables are isolated from the selling company.

Question

Quizplus · Accepted Answer

The factor discounting the amount remitted to the seller is not a requirement for recognizing a transaction as a sale of receivables. The key requirements are that the selling company does not maintain effective control, the factor has the ability to pledge the receivables, and the receivables are isolated from the selling company.

Which of the Following Is Not a Requirement for Recognizing