Should the firms recognize liability in amount of receivable

Reference no: EM13901880

SECURITIZATION OF RECEIVABLES. Firms such as Deere & Company and Macy's, Inc., often sell their receivables as a means of obtaining financing. Should firms selling receivables remove the receivables from the balance sheet, or should the receivables remain on the balance sheet? Should the firms recognize a liability in the amount of the cash received for the receivables? Describe the applicable criteria to determine whether the transfer of receivables can be recorded as a sale.

Reference no: EM13901880

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