Final answer:
Cash (net) realizable value is the net amount the company expects to receive in cash. It is not determined by subtracting discounts, allowances, or bad debts from the total accounts receivable.
Step-by-step explanation:
False. Cash (net) realizable value is the net amount the company expects to receive in cash. It is determined by subtracting any discounts, allowances, or bad debts from the total accounts receivable. It represents the actual cash that the company is likely to collect from its customers. For example, if a company has $10,000 in accounts receivable and estimates that $500 will not be collected, then the cash (net) realizable value would be $9,500.