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The net amount expected to be received in cash from receivables is termed the?

a. Cash realizable value
b. Cash good value
c. Gross cash value
d. Cash equivalent value

1 Answer

2 votes

Final answer:

The net amount expected to be received in cash from receivables is termed the Cash realizable value. It represents the amount a company expects to collect, taking into account any estimated losses or uncollectible amounts.

Step-by-step explanation:

The correct term for the net amount expected to be received in cash from receivables is Cash realizable value. This represents the amount of money a company expects to collect from its customers. It takes into account the total amount of receivables but subtracts any estimated losses or uncollectible amounts.

For example, if a company has $10,000 in receivables but expects 5% of that amount to be uncollectible, the cash realizable value would be $9,500.

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User Seancribbs
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