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:

Legally Free

A status wherein an individual or entity is not under any legal bondage or constraint, enjoying full legal rights and freedoms.

Brutal Owners

Individuals who exercise harsh and cruel control over others, particularly in contexts like slavery or abusive employment practices.

Slave Church

A religious gathering or place of worship created or used by enslaved African Americans, especially during the period of American slavery.

Large Plantations

Extensive agricultural estates typically found in tropical or subtropical regions, where crops like cotton, sugar, and tobacco are cultivated, often with the use of forced or cheap labor.