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.

---

Definitions:

Predictive Knowledge

Knowledge that enables predictions about future events or trends based on current or historical data.

Estimating Components

The process of assessing and predicting the necessary elements, costs, and resources for a project or manufacturing process.

Time Estimates

The approximation of the amount of time needed to complete tasks or projects, often used in planning and scheduling.

Probabilities

A measure or estimation of how likely it is that an event will occur, expressed as a number between 0 and 1.