Accounts Receivable Have a Face Value of $10,000 and a Present

question 20

Essay

Accounts receivable have a face value of $10,000 and a present value of $9,000 on December 31, 2018. At what amount would the accounts receivable be measured on the December 31, 2018 balance sheet?

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Definitions:

Offshore Locations

Sites or jurisdictions outside a country's borders where businesses can operate under favorable legal, tax, or regulatory conditions.

Labor Costs

The total expenses incurred by employers to compensate their workforce, including wages, benefits, and taxes.

Dual Sourcing

A source strategy in which firms produce products in-house to ensure quality and availability while also purchasing the same products from suppliers in order to force competition and push innovation within the in-house unit.

Reshoring

The process of bringing manufacturing and production back to a company's original country from overseas to benefit from lower costs, better quality control, or tighter supply chain management.