An Accounts Receivable Balance Is Immaterial When

question 83

Multiple Choice

An accounts receivable balance is immaterial when

• A)knowing the correct balance would not change the decision of an outside user of the financial statements
• B)the balance has been paid in a subsequent period
• C)collection of the balance is assured
• D)the cash balance exceeds the accounts receivable balance

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Definitions:

Accrued Revenue

Represents income that has been earned but not yet received or recorded at the statement date.

Invoiced

The process of sending a bill to customers or clients for goods or services provided.

Tutoring

The act of providing guidance or instruction to students or learners in a particular subject.

Net Book Value

The value of an asset as recorded on the balance sheet, calculated by subtracting accumulated depreciation or amortization from the asset's original cost.