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Business, 06.12.2019 04:31 griffislandon74

If a company adopts an accounts receivable factoring program, and accounts for the factoring as a sale of receivables, which of the following is true in the period the company starts the program (all else equal)? a. the factoring arrangement needs to be with a consolidated entity to qualify for sale accounting. b. the accounts receivable balance will increase. c. cash flow from operations may increase. d. a retroactive restatement is necessary due to a change in accounting principle.

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