The valuation basis used to measure accounts receivable is:
A)the original cost of the goods sold.
B)current input cost
C)Present value.
D)replacement cost.

Question

Quizplus · Accepted Answer

The most common valuation basis for measuring accounts receivable is present value, which takes into consideration the time value of money and the likelihood of collection. The current input cost or replacement cost may not accurately reflect the value of the receivable, as they are based on current market conditions rather than the specific transaction and customer. The original cost of the goods sold is not relevant to the valuation of accounts receivable.

The Valuation Basis Used to Measure Accounts Receivable Is