Which of the Following Is True About the Presentation of Receivables

question 90

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 carrying amount of accounts receivable on the statement of financial position.
• C)Bad debts expense must be reported under non-operating expenses in the statement of income.
• D)The allowance for doubtful accounts must be reported in the liabilities section of the statement of financial position.

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Definitions:

Externally Motivated

Driven by external rewards or pressures rather than personal interest or intrinsic desire.

Impoverished Background

A situation where an individual or family lives in a state of financial hardship or poverty, lacking sufficient resources for a standard living.

Confirmation Bias

The predisposition to look for, comprehend, prioritize, and recollect facts in a way that supports one’s own prior convictions or hypotheses.

Impoverished Background

Referring to a lack of financial resources and economic stability in one's family or upbringing, often impacting access to opportunities.