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Business, 30.03.2021 17:30 Blut07ilove

Ambiguity can arise as to whether receivables have been sold or instead are being used as collateral for a loan whenever certain obligations, duties, or rights regarding the transferred receivables are retained by the transferor. In distinguishing between sales and collateralized borrowings using receivables, the critical issue: a. is whether the transferor surrenders control over the receivables.
b. comes down to how clearly the rights, etc. being retained are specified in the transfer agreement.
c. is whether any gain or loss related to the transfer is recognized in earnings.
d. is whether the terms regarding the transfer were initiated by the transferor or transferee.
e. In an actual business, which of the following is an inventory accounting issue that frequently arises?

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