The Practice of Reporting the Net Realizable Value of Receivables

question 43

Multiple Choice

The practice of reporting the net realizable value of receivables in the financial statements is commonly called the:

• A) cash flow method of accounting for uncollectible accounts.
• B) allowance method of accounting for uncollectible accounts.
• C) direct write-off method of accounting for uncollectible accounts.
• D) accrual method of accounting for uncollectible accounts.

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