For External Reporting, a Company Must Prepare Either a Statement

question 9

True/False

For external reporting, a company must prepare either a statement of earnings or a cash flow statement, but not both.

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Definitions:

Net Accounts Receivable

The amount of money owed to a company by its customers minus the provision for bad debts.

Principal Value

The original sum of money invested or loaned, before interest or any profit earned.

Note Receivable

An asset on the balance sheet representing money owed to the holder by a debtor, which includes an obligation to pay both the principal and interest.