The following statements pertain to the presentation and valuation of receivables.Which is not in accordance with generally accepted practice?Long-term notes receivables which nominally bear no interest or an interest which isunreasonably low should be stated at face value.Receivables denominated in foreign currency should be translated to local currency usingthe exchange rate on Statement of Financial Position dateCredit balances in customer's accounts receivable should be classified as current liabilitiesReceivable balances should be valued at face amounts minus allowance for doubtfulaccounts and for any anticipated adjustments which in the normal course of events willreduce the amount of receivable to estimated realizable value

There are various regulations prescribed in the generally accepted practice which assists in…

The following statements pertain to the pr Which is not in accordance with generally Long-term notes receivables which nominal unreasonably low should be stated at face Receivables denominated in foreign currene the exchange rate on Statement of Financia Credit balances in customer's accounts rec

The following statements pertain to the pr Which is not in accordance with generally Long-term notes receivables which nominal unreasonably low should be stated at face Receivables denominated in foreign currene the exchange rate on Statement of Financia Credit balances in customer's accounts rec

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter6: Accounting Quality

Section: Chapter Questions

Problem 15QE

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Question

The following statements pertain to the presentation and valuation of receivables.
Which is not in accordance with generally accepted practice?
Long-term notes receivables which nominally bear no interest or an interest which is
unreasonably low should be stated at face value.
Receivables denominated in foreign currency should be translated to local currency using
the exchange rate on Statement of Financial Position date
Credit balances in customer's accounts receivable should be classified as current liabilities
Receivable balances should be valued at face amounts minus allowance for doubtful
accounts and for any anticipated adjustments which in the normal course of events will
reduce the amount of receivable to estimated realizable value

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