How Much Does a Company Expect to Collect from Accounts

question 151

Multiple Choice

How much does a company expect to collect from Accounts Receivable?

• A)gross amount of Accounts Receivable
• B)net realizable value of Accounts Receivable
• C)gross amount of Accounts Receivable minus Allowance for Uncollectible Accounts
• D)B and C

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Definitions:

Copyright

A type of intellectual property protection that grants the creator exclusive rights to use, reproduce, and distribute their original works.

Equitable Estoppel

The principle that when a gratuitous promise to do something in the future causes a person who relies on that promise to incur an expense, the promisor will not be allowed to enforce other contractual rights that are inconsistent with that promise; the promise can only be used as a defense by the promisee; also known as promissory estoppel.

Natural Person

An individual human being, as opposed to a legal entity like a corporation or government.

Legal Bound

Being officially restrained by law or legally obliged to perform or refrain from performing certain actions.