Accounts Receivable Are Usually Valued in the Balance Sheet At

question 16

Multiple Choice

Accounts receivable are usually valued in the balance sheet at:

• A) Market value
• B) Historical cost
• C) The lower of cost and net realisable value
• D) Gross amount less allowance for expected bad debts

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Definitions:

Ownership Interest

The legal right or claim a person has in a property or business, usually expressed as a percentage.

Estate

An interest in land. Property owned by a decedent at the time of his death.

Fee Simple Absolute

The highest form of land ownership, which gives the owner the right to possess and use the land for an unlimited period of time, subject only to governmental or private restrictions, and unconditional power to dispose of the property during his lifetime or upon his death.

Possess

To have ownership or control over an object or property.