The cash realizable value is the difference between the

Question

Quizplus · Accepted Answer

The cash realizable value is the amount of accounts receivable that a company expects to collect in cash. It represents the actual cash that a company will receive, and is calculated by subtracting the allowance account balance (which is an estimate of uncollectible accounts) from the accounts receivable balance. Therefore, choice A is the correct answer.

Choices B and D are incorrect because they subtract bad debt expense, which is an estimate of uncollectible accounts, rather than the allowance account balance.

Choice C is incorrect because it subtracts bad debt expense from accounts receivable, rather than the allowance account balance.

The Cash Realizable Value Is the Difference Between the