After reading all the terms, principles, and concepts on Receivable Financing, let us check your understanding of these. In the space provided, write the term/s being asked in the following statements:

_______________ 1. This is the criterion to determine whether the transfer is accounted for as borrowing.

_______________ 2. What account to debit if the company pays a delinquent notes receivable that was previously discounted.

_______________ 3. What account to credit if the customers notes receivable become delinquent and was not previously discounted.

_______________ 4. When accounts receivable is factored, the accounts payable shall be credited. True or False?

_______________ 5. The interest on a non-interest bearing note is equal to its discount amount.