If a nonfinancial company securitizes its accounts receivables for less than their book value, the most likely effect on the financial statements is an increase cash from operations.
1.COULD anyone write the accounting entries for me ?
part one i know is :
DR :BANK DEPOSIT
CR: RECEIVABLES
2.DR: WHAT
CR : PAYABLES
What is the impact on the cash flow from FINANCING ACTIVITIES ? INCREASE OR DECREASE OR NO IMPACT?
It's hard to believe it has no impact .