Asked by rejina kristin on Apr 25, 2024
Verified
The net amount expected to be received in cash from receivables is termed the
A) cash realizable value.
B) cash-good value.
C) gross cash value.
D) cash-equivalent value.
Cash Realizable Value
The net amount of cash expected to be received from receivables, after adjusting for any allowances for doubtful accounts.
Receivables
Money owed to a company by its customers or other parties, typically from sales on credit, expected to be collected in the future.
- Comprehend the reasoning and techniques for expediting cash inflows from accounts receivable.
- Outline and separate the concepts of sales, non-trade, and trade receivables.
Verified Answer
SS
Superior Sweets6 days ago
Final Answer :
A
Explanation :
The net amount expected to be received in cash from receivables is called the cash realizable value. This is the amount that the company expects to collect from its customers after taking into account any potential bad debts or uncollectible accounts.
Learning Objectives
- Comprehend the reasoning and techniques for expediting cash inflows from accounts receivable.
- Outline and separate the concepts of sales, non-trade, and trade receivables.
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