Trade Accounts Receivable Are Valued and Reported on the Statement

question 80

Multiple Choice

Trade accounts receivable are valued and reported on the statement of financial position

• A)in the investment section.
• B)at gross amounts less sales returns and allowances.
• C)at net realizable value.
• D)only if they are not past due.

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Definitions:

Debit

An accounting entry that results in either an increase in assets or a decrease in liabilities on a company’s balance sheet.

Journalizing

The process of recording business transactions in the accounting journals as part of the bookkeeping process.

Transaction

An agreement or exchange between two parties that is recorded and has an economic impact on the finances of a business.

Journal

A detailed record where all financial transactions of a business are initially recorded, before being transferred to the general ledger.