Accounts Receivable Are Classified as Current Assets

question 167

Multiple Choice

Accounts receivable are classified as current assets:

• A)Only if convertible into cash within 60 days or sooner.
• B)Only if the allowance method is used to estimate the uncollectible accounts.
• C)Only if convertible into cash within one year.
• D)Whenever the accounts receivable arise from "normal" sales of merchandise to customers,regardless of the credit terms.

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