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Question 13
Bigco, Inc. transferred long-term receivables with a carrying
value of $500,000 to Banco for $425,000 cash. Banco will collect
interest on the receivables during the life of the receivables, but
Bigco is obligated to repurchase the receivables prior to their
maturity. What amount of receivables has Bigco surrendered
control of for accounting purposes?
Question 14
Which one of the following is not associated with accounting for a
transfer of a financial asset treated as a sale by the transferor?
Question 15
For accounting purposes, which one of the following is not a
characteristic associated with the transfer of financial assets?
Question 16
A change in the fair value of a derivative qualified as a cash flow
hedge is determined to be either effective in offsetting a change in
the hedged item or ineffective in offsetting such a change. How
should the effective and ineffective portions of the change in value
of a derivative which qualifies as a cash flow hedge be reported in
financial statements?
Question 17
A financial asset is transferred with one component of the asset
appropriately treated as sold and another component
appropriately treated as retained. How will the amount to be
written off as sold be determined?
Question 18