Which of the Following Statements Concerning Receivables Is Incorrect

question 83

Multiple Choice

Which of the following statements concerning receivables is incorrect?

• A) Receivables are often listed after short-term investments.
• B) Companies report bad debt expense as a selling expense.
• C) Both the gross amount of receivables and the allowance for doubtful accounts should be reported.
• D) Interest revenue is shown under other income and expense.

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Definitions:

Journal Entries

The recordings of financial transactions in a company's accounting system, typically including a date, description, and affected accounts.

Cash Payment

A transaction where payment for goods or services is made immediately using cash, rather than through credit or delayed payment.

Operating Income

The profit earned from a firm's regular core business operations, excluding deductions of interest and tax.