The Interest Element for Trade Receivables

question 333

Multiple Choice

The interest element for trade receivables

• A)is usually not recognized because of materiality considerations.
• B)must always be recognized and be accounted for using the net method.
• C)is included in the net realizable value of the receivables.
• D)becomes more significant as the time between the sale and payment shortens.
• Cash and Receivables 7 - 11

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