Question

Which of the following is not an issue related to the valuation of accounts receivable?

A) The credit granting function.
B) A proper allowance for doubtful accounts.
C) The net realizable value of accounts receivable.
D) Proper cutoff.

Answer 1

Proper cutoff is not an issue related to the valuation of accounts receivable.

Step-by-step explanation:

The correct answer is D) Proper cutoff. Proper cutoff is not an issue related to the valuation of accounts receivable. It refers to the recording of transactions in the correct accounting period, which relates to the timing of revenue recognition rather than the valuation of accounts receivable. The other options (A) The credit granting function, (B) A proper allowance for doubtful accounts, and (C) The net realizable value of accounts receivable are all important factors in the valuation of accounts receivable.