Which of the Following Statement Is Incorrect Regarding Receivables on the Statement

question 65

Multiple Choice

Which of the following statement is incorrect regarding receivables on the statement of financial position?

• A)Receivables are a financial asset.
• B)Receivables are financial instruments.
• C)Non-trade receivables are generally reported as separate items in the statement of financial position.
• D)Accounts receivable are written promises of the purchaser to pay for goods or services.

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Definitions:

Fair Value Hedge

A hedge that protects against changes in the fair value of assets, liabilities, or firm commitments through the use of a derivative.

British Pounds

The currency of the United Kingdom, also known as GBP, which is one of the world's major currencies.

Foreign Exchange Gain

A profit resulting from changes in exchange rates affecting the value of investments or transactions in foreign currencies.

Non-Interest-Bearing Note

A type of debt instrument that does not pay interest but is instead issued at a substantial discount from its face value and pays its full face value at maturity.