Companies value and report short-term receivables at net realizable value_the net amount they expect to receive in cash.

Question

Quizplus · Accepted Answer

This statement is true. Companies report short-term receivables at net realizable value, which is the estimated amount they expect to collect in cash after accounting for any necessary allowances or discounts. Reporting receivables at net realizable value provides a more accurate representation of the amount of cash the company is likely to receive in the short term.

Companies Value and Report Short-Term Receivables at Net Realizable Value_the