Which of the following statements concerning receivables is incorrect?
A) Notes receivable are often listed last under receivables.
B) The contingent liability from selling notes receivable should be disclosed.
C) Both the gross amount of receivables and the allowance for doubtful accounts should be reported.
D) Interest revenue and gain on sale of notes receivable are shown under other revenues and gains.

Question

Quizplus · Accepted Answer

Notes receivable are usually listed before accounts receivable on the balance sheet as they are often considered a more secure form of receivable due to having a written agreement in place.

Which of the Following Statements Concerning Receivables Is Incorrect