Which of the Following Is True About the Presentation of Receivables

question 63

Multiple Choice

Which of the following is true about the presentation of receivables?

• A)Companies must report gross accounts receivable on the statement of financial position.
• B)Companies must report the net realizable value of accounts receivable on the statement of financial position.
• C)Bad debt expense must be reported under non-operating expenses in the income statement.
• D)The allowance for doubtful accounts must be reported in the liabilities section of the statement of financial position.

---

Definitions:

Sell the Stock

An action where an investor disposes of their ownership in a corporation through the sale of its shares.

Maintenance Margin

The minimum equity amount that must be maintained in a margin account after a purchase has been made, to cover the risk of the investment.

Margin Call

A demand by a broker that an investor deposit further cash or securities to cover possible losses.

Initial Margin

The minimum amount of equity required to enter into a position as security for performance, used in futures and margin trading.