Accounts Receivable Consist of the Credit of the Business

question 41

Multiple Choice

Accounts receivable consist of the credit of the business.It can take the form of which of the following?

• A)I only
• B)II only
• C)Both I and IT
• D)Neither I nor II

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Definitions:

Original Cost

The initial purchase price or construction cost of an asset before adjustments for depreciation or amortization.

Trading Securities

Financial instruments, such as stocks or bonds, that are bought and held primarily for the purpose of selling them in the near term to profit from price fluctuations.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits over a certain period.

Valuation Allowance Accounts

Accounts used to adjust the carrying value of deferred tax assets to the amount that is more likely than not to be realized.