_____ A firm decides to sell a pool of receivables to a factor with recourse

(i.e. the firm selling the receivables must make payment to the buyer of the

receivables in the event that the party that originally owes the money does

not pay). Under Current U.S. GAAP, which of the following statements

is (are) true:

A. The firm selling the receivables is prohibited from reporting any

Gain or Loss on the sale.

B. Any cash received from such a transaction must be reported in the

Financing Section of the Statement of Cash Flows.

C. Both Statements A & B are true.

D. None of the above statements are true.