Which of the Following Statements Is Incorrect Regarding the Classification

question 130

Multiple Choice

Which of the following statements is incorrect regarding the classification of accounts and notes receivable?

• A) Segregation of the different types of receivables is required if they are material.
• B) Disclose any loss contingencies that exist on the receivables.
• C) Any discount or premium resulting from the determination of present value in notes receivable transactions is an asset or liability respectively.
• D) Valuation accounts should be ap?propriately offset against the proper receivable accounts.

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Definitions:

Peacefulness

The state of being calm, tranquil, and free from conflict or disturbance.

Traditionals

Traditionals, often referred to as Traditionalists, are individuals or groups that adhere strictly to established practices and resist change.

Rules

Guidelines or principles that govern behavior and procedures within various contexts and organizations.

Policies

Formal guidelines or rules that govern the operations and decision-making processes within organizations.