Choose the correct statement(s) below regarding the transfer of financial assets such as receivables:

I. In a transfer of receivables without recourse, the transferee obtains the right to compensation from the transferor for customer accounts that prove to be uncollectible.

II. In a transfer which qualifies as a secured borrowing, the transferor will record a liability for the amount borrowed.

III. Under otherwise identical conditions, a transferor will generally pay a higher commission percentage on a receivable sold with recourse versus one sold without recourse.

Multiple Choice

I and III only.

II only.

I, II and III.

III only.