The net accounts receivable reported in the current asset section of a company's balance sheet represents all receivables expected to be collected within the next year.

Question

Quizplus · Accepted Answer

A company makes two representations when reporting receivables in the balance sheet. The first is that it expects to collect the amount reported on the balance sheet. The second is that it expects to collect within the next year or operating cycle.

The Net Accounts Receivable Reported in the Current Asset Section