Assuming That the Ideal Measure of Short-Term Receivables in the Statement

question 10

Multiple Choice

Assuming that the ideal measure of short-term receivables in the statement of financial position is the discounted value of the cash to be received in the future, failure to follow this practice usually does not make the statement of financial position misleading because

• A) most short-term receivables are not interest-bearing.
• B) the allowance for uncollectible accounts includes a discount element.
• C) the amount of the discount is not material.
• D) most receivables can be sold to a bank or factor.

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Definitions:

Network Organisations

Structures where companies or groups operate flexibly, often collaborating through digital connections, to achieve common goals.

Core Functions

The primary activities or operations that are essential for an organization to achieve its mission and goals.

Outsourcing

The practice of hiring third-party vendors to perform services or produce goods that were previously handled internally.

Structural Innovation

The process of changing an organization’s structure, including its systems and processes, to improve performance and adaptability.