If a long- term note receivable is included on an accounts receivable listing, there is a violation of the:
A) timing objective.
B) completeness objective.
C) existence objective.
D) classification objective.

Question

Quizplus · Accepted Answer

Accounts receivable listings are typically used to show the amount of money owed to a company but not yet paid as of a specific date. Long-term notes receivable are not typically included on such listings, as they are not considered part of the company's current assets. Therefore, their inclusion would violate the classification objective, which requires that items be properly classified according to their nature and purpose.

If a Long- Term Note Receivable Is Included on an Accounts