Assuming That the Ideal Measure of Short-Term Receivables in the Statement

question 60

Multiple Choice

Assuming that the ideal measure of short-term receivables in the statement of financial position is the discounted value of the cash to be received in the future, failure to follow this practice usually does NOT make the financial statements misleading because

• A) most short-term receivables are not interest-bearing.
• B) the allowance for uncollectible accounts includes a discount element.
• C) the amount of the discount is not material.
• D) most receivables can be sold to a bank or factor.

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Definitions:

Influenced

Being affected or changed in behavior, attitude, or other aspects due to the impact of external factors.

Situational Attribution

The process of inferring that a person's behavior is due to situational factors.

Dispositional Attribution

The tendency to attribute someone's behavior to their personality or character rather than to external factors.

Stanley Milgram's Obedience Research

A series of social psychology experiments conducted in the 1960s which measured the willingness of study participants to obey an authority figure who instructed them to perform acts conflicting with their personal conscience.