Which Use the Term Impairment to Indicate That a Receivable

question 163

Multiple Choice

Which use the term impairment to indicate that a receivable may not be collected?

• A) Neither IFRS nor GAAP
• B) Both IFRS and GAAP
• C) IFRS, but not GAAP
• D) GAAP, but not IFRS

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Definitions:

Prepaid Insurance

An asset account that represents insurance payments made in advance of the period in which the insurance coverage applies.

Cash Amount

The total value of cash on hand, including currency, coins, and balances in demand deposit accounts.

Accounts Receivable

Money owed to a business by its clients for goods or services that have been delivered or sold but not yet paid for.