Which of the Following Is the Amount of Money That

question 82

Multiple Choice

Which of the following is the amount of money that would be realized upon the sale of the asset at some point in the future, less the costs associated with owing, operating and selling it?

• A) Net realizable value
• B) Going concern
• C) Cost
• D) Fair value

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Definitions:

Accounts Receivable

Funds that customers owe to a company for products or services that have been provided but not yet compensated for.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of a company's accounts receivable that may not be collectible.

Mutual Agency

A principle in partnership where each partner is both an agent and a principal to the partnership, authorized to bind the partnership in contracts and agreements.

Partnership Business

A business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Agreement.