Assuming That the Ideal Measure of Short-Term Receivables in the Balance

question 12

Multiple Choice

Assuming that the ideal measure of short-term receivables in the balance sheet is the discounted value of the cash to be received in the future, failure to follow this practice usually does not make the balance sheet misleading because

• A) Most short-term receivables are not interest bearing
• B) The allowance for uncollectible accounts includes a discount element
• C) The amount of the discount is not material
• D) Most receivables can be sold to a bank or factor

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Definitions:

Followers

Individuals who look to a leader for guidance, direction, and inspiration in various contexts.

Behavioral Model

A framework for understanding and predicting individual behavior through analysis of observable actions and external stimuli.

Initiating Structure

A leadership behavior characterized by clearly defining roles, setting tasks, and establishing channels of communication for achieving objectives.

Consideration Behaviors

The actions or approaches taken by individuals or leaders that show attention to and care for the feelings and needs of others.