Which of the Following Statements Concerning Receivables Is Incorrect

question 151

Multiple Choice

Which of the following statements concerning receivables is incorrect?

• A) Notes receivable are often listed last under receivables.
• B) The contingent liability from selling notes receivable should be disclosed.
• C) Both the gross amount of receivables and the allowance for doubtful accounts should be reported.
• D) Interest revenue and gain on sale of notes receivable are shown under other revenues and gains.

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Definitions:

Monozygotic Twins

Twins derived from a single fertilized egg, leading them to be genetically identical.

Senses

Biological systems used by organisms to detect and process sensory information from the environment, including sight, hearing, touch, taste, and smell.

Hearing

The sensory process by which sound waves are detected by the ear and interpreted by the brain.

Conservation

In psychology, the understanding that certain properties of an object or substance do not change when its appearance is altered in some superficial way, a concept developed by Piaget in his theory on cognitive development.