The Interest Element for Trade Receivables

question 29

Multiple Choice

The interest element for trade receivables

• A)is usually not recognized because of materiality considerations.
• B)must always be recognized and be accounted for using the net method.
• C)is included in the net realizable value of the receivables.
• D)becomes more significant as the time between the sale and payment shortens.

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Definitions:

Symbolic Thinking

The ability to use symbols, images, or objects to represent something that is not physically present, commonly seen in language, mathematics, and art.

Logical Thinking

The process of reasoning consistently and systematically to come to a conclusion.

Authoritarian

Describes a governing style characterized by strong central power and limited political freedoms.

Authoritative

Characterized by or exhibiting power or authority, often used to describe a commanding figure or a definitive source of information.