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:

Stock Frauds

Illegal activities involving manipulation of stock markets to deceive investors and profit unlawfully.

Bill Clinton

The 42nd President of the United States (1993-2001), known for his policies on the economy, welfare reform, and his involvement in several scandals.

Aid to Families

A government welfare program designed to provide financial assistance to households, especially those with children, to alleviate poverty.

Welfare System

A government program that provides financial aid and services to support individuals and families in need, aiming to meet basic human needs and promote social well-being.