If a Company Has a Long-Term Account Receivable Outstanding and the Receivable

question 98

Multiple Choice

If a company has a long-term account receivable outstanding and the receivable does not require interest, what is the effect on revenue and the receivable account?
$\begin{array}{ll}&\text { Revenue }&\text { Receivable }\\\hlineA.&\text { Overstated } & \text { Overstated } \\B.&\text { Overstated } & \text { Understated } \\C.&\text { Understated } & \text { Overstated } \\D.&\text { Understated } & \text { Understated }\end{array}$

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Economic

pertains to the production, distribution, and consumption of goods and services and how societies allocate their resources.

Technological

Pertaining to technology; involving, using, or relating to the application of scientific knowledge for practical purposes.

Political-Legal Environment

The aspect of the external environment of an organization that deals with the legal and political conditions influencing its operations.

Politicization

The process by which an issue, policy, or action becomes influenced by political considerations or becomes a matter of political debate.