Optimize Cash Flow Through Receivables Factoring
Factoring is a type of transaction where an entity sells it customer receivables to a financial intermediary who then in turn collects payment from the entity’s customers. Many entities employ this strategy to accelerate cash collection. This course provides an overview of the accounting and reporting requirements with respect to accounts receivable factoring programs as well as the conditions that must be met in order to recognize the transfer of these financial assets as a “true sale” instead of a secured borrowing.

Course Publication Date: October 20, 2022

This course is available with NO ADDITIONAL FEE if you have an active self study membership or all access membership or can be purchased for $20.00!

Author:Kelen Camehl
Course No:ACT-CASHFAC-25002
Recommended CPE:2.00
Delivery Method:QAS Self Study
Level of Knowledge:Basic
Advanced Preparation:None
Recommended Field of Study:Accounting
Learning Objectives
  • Recognize key characteristics as well as advantages/disadvantages of factoring arrangements.
  • Identify the U.S. GAAP area applicable to factoring arrangements.
  • List the three specific conditions that must be met for a factoring arrangement to qualify as a sale.
  • Recognize key evaluation considerations relating to true sale opinions.
  • Identify examples of continuing involvement.
  • Recognize the impact from a failed sale in a factoring arrangement.

CPE Depot Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

Sponsor Number: 109423


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