Question

At what value are accounts receivable reported on the balance sheet?

1) Cash realizable value
2) Maturity value
3) Present value
4) Fair market value

Answer 1

Accounts receivable are reported at their present value on the balance sheet. This represents the amount of cash that the company expects to collect from its customers in the future.

Step-by-step explanation:

On the balance sheet, accounts receivable are reported at their present value. Present value is the value of a future cash flow discounted to reflect its current value. In the case of accounts receivable, this represents the amount of cash that the company expects to collect from its customers in the future. It takes into account factors such as the time value of money and the risk of non-payment.