The Net Amount Expected to Be Received in Cash from Receivables

question 4

Multiple Choice

The net amount expected to be received in cash from receivables is termed the

• A)net realizable value.
• B)fair value.
• C)gross cash value.
• D)cash-equivalent value.

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Definitions:

Operating Cash Payments

Cash outflows related to the primary revenue-generating activities of a business, such as payments to suppliers and employees.

Patents

Legal grants to inventors that provide them the exclusive rights to use, sell, or manufacture their invention for a certain number of years.

Net Change

The difference between the closing price of a security on the trading day and its closing price on the previous trading day.

Investing Activities

Financial transactions and events related to the acquisition and disposal of long-term assets and investments, as reported in the cash flow statement.