The general accounting standards for recognition and measurement of accounts receivable include
A) measuring the receivable initially at amortized cost.
B) measuring the receivable initially at fair value.
C) after initial recognition, measuring the receivable at fair value.
D) not recognizing the receivable until it is paid.

Question

Quizplus · Accepted Answer

Accounts receivable are initially measured at fair value, which typically reflects the transaction price agreed upon by the parties involved.

The General Accounting Standards for Recognition and Measurement of Accounts