Question 13

Assuming that the ideal measure of short-term receivables in the balance sheet is the discounted value of the cash to be received in the future, failure to follow this practice usually does not make the balance sheet misleading because

		Most short-term receivables are not interest bearing
		The allowance for uncollectible accounts includes a discount element
		The amount of the discount is not material
		Most receivables can be sold to a bank or factor

Question 14

Which of the following inventory cost flow methods involves computations based on broad inventory pools of similar items?

		Regular quantity of goods LIFO
		Dollar-value LIFO
		Weighted average
		Moving average

Question 15

When inventory declines in value below original (historical) cost, and this decline is considered other than temporary, what is the maximum amount that the inventory can be valued at?

		Sales price net of conversion costs
		Net realizable value
		Historical cost
		Net realizable value reduced by a normal profit margin