Firms may achieve off balance sheet financing by treating the transfer of receivables with recourse:

As a sale when in substance it represents a secured borrowing.

As a secured borrowing when in substance it represents a sale.

All of the above.

None of the above.

2.Under what circumstances are financial statements permitted to be presented in a manner that violates GAA

if the impact upon the financial statements is judged to be immaterial

if the financial statements are approved by the Board of Directors

if they are issued earlier than usual

none of the above

3. Behrend Corporation held the following items at 12/31/14:

Currency and coins $650

Balance in checking account 2,600

Customer checks waiting to be deposited 1,200

Treasury bills, purchased on 12/1/14, mature on 5/1/15 10,200

What amount will Behrend include in its year-end balance sheet as cash and cash equivalents?

$650

$3,250

$4,450

$14,650