Assuming That the Ideal Measure of Short-Term Receivables in the Balance

question 12

Multiple Choice

Assuming that the ideal measure of short-term receivables in the balance sheet is the discounted value of the cash to be received in the future, failure to follow this practice usually does not make the balance sheet misleading because

• A) Most short-term receivables are not interest bearing
• B) The allowance for uncollectible accounts includes a discount element
• C) The amount of the discount is not material
• D) Most receivables can be sold to a bank or factor

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Definitions:

Mitotic Cleavages

A series of cell divisions without growth phases that occur in the early embryo, leading to an increase in cell number and the formation of the multicellular structure.

Fertilization

The process of a sperm cell uniting with an egg cell, leading to the development of a fertilized egg or zygote.

Zygote

The initial cell formed when a sperm cell fertilizes an egg cell, representing the earliest stage of embryonic development.

Prenatal Development

The process of growth and development within the womb from conception to birth.