Which of the Following Statements Concerning Receivables Is Incorrect

question 151

Multiple Choice

Which of the following statements concerning receivables is incorrect?

• A) Notes receivable are often listed last under receivables.
• B) The contingent liability from selling notes receivable should be disclosed.
• C) Both the gross amount of receivables and the allowance for doubtful accounts should be reported.
• D) Interest revenue and gain on sale of notes receivable are shown under other revenues and gains.

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Definitions:

Stock Split

A corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares, although the overall value of the company does not change.

Common Stock

Equity securities that represent ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Outstanding

Unsettled or remaining due; not yet paid, resolved, or completed.

Stock Split

A decision by a company to increase the number of its outstanding shares by issuing more shares to current shareholders.