After the Accounts Are Adjusted and Closed at the End

question 143

Multiple Choice

After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $460,000 and Allowance for Doubtful Accounts has a balance of $30,000. What is the net realizable value of the accounts receivable?

• A) $30,000
• B) $430,000
• C) $460,000
• D) $490,000

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Definitions:

Large Position

Holding a significant quantity of a particular stock, bond, or other financial asset, influencing potential risk and return.

Dominance Argument

A concept in portfolio theory suggesting that if one investment dominates another on all measures of performance, it is the preferable choice.

Risk Premium

The extra return expected by investors for holding a risky asset over a risk-free one, compensating for the higher risk.

Economic Factors

Variables or conditions in the economic environment that affect the performance of investments, markets, or economies, such as inflation, interest rates, and GDP growth.