Tom&Dick sells computer software. All credit transactions are done through credit cards, so there is a 100% probability of receiving the money, but there is a wait of up to 10 days while the transaction is being processed. When Tom&Dick prepares financial statements at the end of its first business year, it should *a. exclude accounts receivable, because customers may not pay b. include accounts receivable as an asset because of the matching principle c. exclude accounts receivable as the amount is variable with interest rates d. include accounts receivable as an asset because of the cost principle e. none of the above
Tom&Dick sells computer software. All credit transactions are done through credit cards, so there is a 100% probability of receiving the money, but there is a wait of up to 10 days while the transaction is being processed. When Tom&Dick prepares financial statements at the end of its first business year, it should *a. exclude accounts receivable, because customers may not pay b. include accounts receivable as an asset because of the matching principle c. exclude accounts receivable as the amount is variable with interest rates d. include accounts receivable as an asset because of the cost principle e. none of the above
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Tom&Dick sells computer software. All credit
transactions are done through credit cards, so there is a
100% probability of receiving the money, but there is a
wait of up to 10 days while the transaction is being
processed. When Tom&Dick prepares financial
statements at the end of its first business year, it should
*a. exclude
may not pay b. include accounts receivable as an asset
because of the matching principle c. exclude accounts
receivable as the amount is variable with interest rates
d. include accounts receivable as an asset because of
the cost principle e. none of the above
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