The relation between the method of coupled channels for rearrangement reactions (CRC) and the bound state approximation to the channel coupling array formalism (BSCCA), advocated in recent years, is investigated in detail for a simple 3-body system expressed in terms of truncated component wavefunctions of Faddeev type. The system is described by coupled differential or integral equations that are truncated into a model space of strongly-coupled channels. It is shown that CRC can be derived from the truncated coupled equations, either in differential or integral form, provided care is taken to use the entire model space. The corresponding BSCCA in this model space can be obtained from a restrictive condition on the integral from of the coupled equations, while it cannot be obtained consistently from the differential form of the coupled equations. The boundary conditions for the component functions are discussed in detail.