Trade accounts receivable due within 90 days would not normally be discounted, since the time value of money would be deemed to be immaterial in such a case.

Name: Trade accounts receivable due within 90 days would not normally be discounted, since the time value of money would be deemed to be immaterial in such a case.
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Question

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The time value of money is often considered immaterial for short periods like 90 days, so discounting is typically not applied to trade accounts receivable due within this timeframe.

Trade Accounts Receivable Due Within 90 Days Would Not Normally