Question
Not all A/R is collectable. that means we must impair it by the bad debt trend to arrive at the impaired A/R balance BEFOREW calculating
Not all A/R is collectable. that means we must impair it by the bad debt trend to arrive at the impaired A/R balance BEFOREW calculating the liquidity rations. (A) Should each of these be impaired? (B) What would be your approach to impairing the following CAs? (C)What would you base your process on and why?
1. Cash
2. Marketable Securities
3. Inventories
4. Pre-Pays
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Personal Finance An Integrated Planning Approach
Authors: Ralph R Frasca
8th edition
136063039, 978-0136063032
