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Author: |
Kelen Camehl, CPA, MBA |
Course Length: |
Pages: 18 ||| Word Count: 6711 ||| Review Questions: 4 ||| Final Exam Questions: 5 |
CPE Credits: |
1.0 |
IRS Credits: |
0 |
Price: |
$12.95 |
Passing Score: |
70% |
Course Type: |
Text |
Technical Designation: |
Technical |
Field Of Study: |
Accounting |
Approved Audience: |
NASBA QAS - NASBA Registry |
Key Takeaways: |
This course offers a high level overview of accounting and reporting considerations for accounts receivable factoring, focusing on the true sale versus secured borrowing distinction.
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Frequently Asked Questions: |
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Description: |
Factoring involves selling customer receivables to a financial intermediary, which then collects payment directly from the customers. This strategy is commonly used to accelerate cash flow. This course offers a high-level overview of the accounting and reporting considerations for accounts receivable factoring, focusing on the criteria for determining whether the transfer qualifies as a “true sale” or should be accounted for as a secured borrowing. |
Usage Rank: |
18571 |
Release: |
2025 |
Version: |
1.0 |
Prerequisites: |
None. |
Experience Level: |
Overview |
Additional Contents: |
Complete, no additional material needed. |
Additional Links: |
External: Accounts Receivable (AR): Definition, Uses, and Examples
Internal: Optimize Cash Flow Through Receivables Factoring
Internal: Accounts Receivable Best Practices for Small‑to‑Medium‑Sized Commercial Entities
External: Factoring of Receivables - IRS Audit Techniques Guide
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Advance Preparation: |
None. |
Delivery Method: |
QAS Self Study |
Intended Participants: |
Anyone needing Continuing Professional Education (CPE). |
Revision Date: |
17-Mar-2025 |
NASBA Course Declaration: |
Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam. |
Keywords: |
Accounting for Receivables Factoring: A Practical Overview - CPE course for CPAs |
Learning Objectives: |
Course Learning Objectives Upon completion of this course, you will be able to:
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Course Contents: |
Chapter 1 - Accounting for Receivables Factoring: A Practical Overview Course Learning Objectives Course Overview Introduction Factoring Purposes Factoring Considerations Applicable U.S. GAAP Sale Condition Requirements Sale Condition #1 – Legal Isolation of the Assets True Sale Opinion Review Questions Sale Condition #2 – Right to Pledge or Exchange Sale Condition #3 – Effective Control Factoring Arrangements That Qualify as a Sale Re-Recognition Events Factoring Arrangements Not Qualifying as a Sale Conclusion Review Questions Glossary of Key Terms |
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