At the End of an Accounting Period, If the Fair

question 30

Short Answer

At the end of an accounting period, if the fair value of the trading portfolio is less than its cost, then the company should recognize an ______________ that is reported on the _________________.

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Definitions:

Accounts Receivable

Money owed to a business by its customers for goods or services delivered or used but not yet paid for.

Operating Cycle

The duration between the acquisition of inventory and the collection of cash from receivables, indicating the time needed to sell inventory and collect cash.

Inventory

The cumulative quantity of products and materials in a company's possession intended for either direct sale or use in manufacturing.

Accounts Receivable

Accounts receivable represents the money owed to a company by its customers for goods or services delivered but not yet paid for.