Short-term notes receivable are reported at
A) cash (net) realizable value.
B) face value.
C) gross realizable value.
D) maturity value.

Question

Quizplus · Accepted Answer

Short-term notes receivable are reported at cash (net) realizable value, which is the face value of the note less any allowance for uncollectible accounts. This is because the purpose of reporting the receivables on the balance sheet is to show the amount of cash that the company expects to receive from these receivables. Therefore, the cash (net) realizable value is a more relevant and accurate representation of the value of the receivable.

Short-Term Notes Receivable Are Reported at