The Following Information Was Presented in the Balance Sheet of Acworth

question 39

Multiple Choice

The following information was presented in the balance sheet of Acworth Pools as of December 31,2012: Trade accounts receivable, net of allowance for doubtful
accounts of $\$ 200,000$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\$ 1,700,000$ Select the incorrect statement from the following.

• A)The company expects to actually collect $1,700,000 of its receivables.
• B)The balance in the Accounts Receivable account in the company's general ledger is $1,700,000.
• C)The net realizable value of the company's receivables is $1,700,000.
• D)The company expects uncollectibles to total $200,000.

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Definitions:

Japanese Yen

The official currency of Japan, represented by the symbol ¥.

Euro

The official currency of the Eurozone, which is used by most European Union countries and is one of the world's major currencies.

Exchange Rate

The worth of one currency relative to another, used to determine the amount of one currency that can be swapped for a different one.

Japanese Yen

The official currency of Japan, often symbolized as ¥ and known for being one of the most traded currencies in the foreign exchange market.