Countertrade Is Not an Option for Smaller Companies Because of the Cash

question 88

True/False

Countertrade is not an option for smaller companies because of the cash outlays involved.

---

Definitions:

Net Realizable Value

The estimated selling price of an asset in the ordinary course of business minus any costs necessary to make the sale.

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered but not yet paid for.

Written Off

The process of acknowledging that a debt is uncollectible and removing it from the accounts.

Bad Debts Expense

An estimated expense that represents the amount of receivables that are not expected to be collected.