Assuming That the Ideal Measure of Short-Term Receivables in the Statement

question 10

Multiple Choice

Assuming that the ideal measure of short-term receivables in the statement of financial position is the discounted value of the cash to be received in the future, failure to follow this practice usually does not make the statement of financial position misleading because

• A) most short-term receivables are not interest-bearing.
• B) the allowance for uncollectible accounts includes a discount element.
• C) the amount of the discount is not material.
• D) most receivables can be sold to a bank or factor.

---

Definitions:

Cultural Pluralism

A situation or policy that recognizes and respects diversity in culture and encourages the coexistence of different cultures within a society.

Ethnic Diversity

The presence of multiple ethnic groups within a given society, often contributing to a rich cultural mosaic but sometimes leading to social tension and conflict.

Harlem Renaissance

African-American literary and artistic movement of the 1920s centered in New York City’s Harlem neighborhood; writers Langston Hughes, Jean Toomer, Zora Neale Hurston, and Countee Cullen were among those active in the movement.

Claude McKay

A Jamaican writer and poet who was a seminal figure in the Harlem Renaissance, a significant literary movement in the 1920s among African Americans.