CFA Practice Question

There are 90 practice questions for this study session.

CFA Practice Question

According to GAAP, the gains recognized from securitizing accounts receivable should be reported ______.

I. within revenues
II. as an offset to selling, general or administrative expenses
III. in other non-operating income
Correct Answer: All of these options are possible.

GAAP are silent on where the gains should be reported in the income statement.

User Contributed Comments 1

User Comment
HenryQ Sale of A/R is operating CF, but gains from the pv of interest on A/R is not recognized by GAAP. Reporting in revenue is most aggressive.
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