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:

Nonprofit Firms

Organizations that operate for purposes other than generating profit, typically focusing on social, educational, or charitable activities.

Buying Objective

The goals or aims that guide a consumer's or organization's purchasing decisions, including considerations like quality, cost, and convenience.

Buyer-seller Relationships

The ongoing interactions and engagement between a buyer and a seller, which can impact satisfaction, loyalty, and overall business performance.

Long-term Contracts

Agreements between parties that extend over a lengthy period, typically involving a commitment to buy or sell goods or services for the duration of the contract.