The Net Amount Expected to Be Received in Cash from Receivables

question 207

Multiple Choice

The net amount expected to be received in cash from receivables is termed the

• A) cash realizable value.
• B) cash-good value.
• C) gross cash value.
• D) cash-equivalent value.

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Definitions:

Retained Earnings

The portion of net income that is kept by a company to reinvest in its core business or to pay debt, rather than being distributed to shareholders as dividends.

Revenue Accounts

Accounts that track the income generated from the sale of goods and services, investments, and other sources during the accounting period.

Expense Accounts

Accounts used to track the costs incurred by a business in the course of its operations, not directly tied to the production of goods or services.

End-Of-Period Spreadsheet

A worksheet used at the end of an accounting period to compile all balances from ledgers, facilitating the preparation of financial statements.