The Collection Period of Accounts Receivable Is Usually Long,and Therefore,it

question 213

True/False

The collection period of accounts receivable is usually long,and therefore,it is classified as a long-term asset on the balance sheet.

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Definitions:

Principal Amount

The original sum of money borrowed in a loan, or invested, on which interest is calculated.

Maturity

Maturity is the date on which the principal amount of a bond, loan, or other financial instrument is to be repaid in full to the investor or lender.

Stated Interest Payment

The amount of interest that a bond or loan promises to pay to its holder, usually expressed as an annual percentage of the principal.

Coupon

The interest rate paid by a bond, typically expressed as an annual percentage of the bond's face value.