Final answer:
In Cash Flow reporting, Accounts Receivable is typically measured at its benefit value, which is the economic value the company expects to receive. It is not measured at $0 or at its sacrifice value, although the exact measurement can depend on the company's accounting system. The present discounted value is used for calculating the value of future cash inflows like receivables.
Step-by-step explanation:
In Cash Flow reporting, Accounts Receivable is typically measured based on the benefit value that the company expects to receive. This essentially refers to the economic value that the accounts receivable will bring to the company when they are collected. It is not measured at $0 because it represents future cash inflows to the company. It's not strictly considered at its sacrifice value, as this term often relates to the cost of giving up a resource, rather than the expected cash inflow from receivables. The value could depend on the measuring system, particularly if the organization is using a specific method for accounting, like accrual versus cash accounting.
If we are looking to understand the present value of expected cash flows such as future accounts receivable, we would refer to present discounted value calculations. Table C1's reference to the present discounted value of future profits would apply the formula for each time period when a benefit is to be received, which means reducing the future amounts to present value by applying a discount rate that reflects the cost of capital or opportunity cost of the firm.