Which of the Following Statements Concerning Receivables Is Incorrect

question 19

Multiple Choice

Which of the following statements concerning receivables is incorrect?

• A)Notes receivable are often listed last under receivables.
• B)The contingent liability from selling notes receivable should be disclosed.
• C)Both the gross amount of receivables and the allowance for doubtful accounts should be reported.
• D)Interest revenue and gain on sale of notes receivable are shown under other income and expense.

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Definitions:

Comparative Advantage

The ability of a country, individual, company, or region to produce a good or service at a lower opportunity cost than competitors.

Trade

The process of purchasing, selling, or trading goods and services among individuals, companies, or nations.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, resulting in market balance without excess supply or demand.

Tax Policy

The set of laws and regulations governing how taxes are collected, managed, and utilized by a government.