CHAPTER 8

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notification and non notification basis

assignment can be done either on a

true

assignment is specific because specific a/r serve as collateral security for the loan

pledge of a/r assignment of a/r factoring of a/r discounting of a/r

common forms of receivable financing

true

during a general business decline, an entity may find itself in tight cash position because sales decrease and customers are not paying their accounts on time. under these circumstances, if the situation becomes very critical, the entity may be forced to look for cash by financing its receivables

receivable financing

financial flexibility or capability of an entity to raise money out of its receivables

statement presentation of liab and disclosure

if in pledging of a/r, waay na settle at year-end, kinanglan mag present ka

lantawon if sino an naga collect bank - notif assignor, payee, entity - non notif

if the problem doesn't state whether it is a notification or non notification, paano mo maman an?

pledge of accounts receivable

in this form of receivable financing, no complex problems are involved except the accounting for loan

pledge of accounts receivable

in this form of receivable financing, the borrowing entity makes collections of the pledged accounts but may be required to turn over the collections to the bank in satisfaction of the loan

pledge of accounts receivable

in this form of receivable financing, when loans are obtained from the bank or any lending institution, the accounts receivable may be pledged as collateral security for the payment of the loan

assignement of a/r

means that a borrower called ASSIGNOR transfer rights(bank have the right to collect) in some a/r to a lender called assignee in consideration for a loan

true

pledging is general because all a/r serve as a collateral security for the loan

true

the assignee usually charges interest for the loan it makes and requires a service or financing charge or commission for the assignment agreement (normally deducted sa cash to be released) - ginansya ka bank

assignment

this is a more formal type of pledging of a/r. this is a secured borrowing evidenced by a financing agreement and a promissory note both of which assignore signs

customers are not informed that their accounts have been assigned. as a result, the customers continue to make payments to the assignor who in turn remits the collections to the assignee

when accounts are assigned on a nonnotification basis,

customers are notified to make payments directly to asignee

when accounts are assigned on a notif basis,

true

with respect to pledged accounts, no entry would be necessary. it is sufficient that disclosure thereof is made in a note to f/s


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