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Short-term notes receivable are reported at Group of answer choicescash (net) realizable value.face valuegross realizable value.maturity value

Question

Short-term notes receivable are reported at

Group of answer choices

  • cash (net) realizable value.
  • face value
  • gross realizable value.
  • maturity value
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Solution

To determine how short-term notes receivable are reported, we need to understand the different terms provided in the answer choices:

  1. Cash (net) realizable value: This is the amount of cash that is expected to be received from the notes receivable, after accounting for any potential uncollectible amounts.

  2. Face value: This is the principal amount of the note, which is the amount stated on the note itself without any adjustments.

  3. Gross realizable value: This term is not commonly used in accounting, but it could imply the total amount expected to be received before any deductions.

  4. Maturity value: This is the total amount that will be received at the maturity date of the note, including both the principal and any interest.

Short-term notes receivable are typically reported at their cash (net) realizable value. This is because it reflects the actual amount of cash that the company expects to collect, which provides a more accurate representation of the asset's value on the balance sheet.

Therefore, the correct answer is cash (net) realizable value.

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