Question

Accounts receivable are originally (at acquisition) valued at: A. Historical Cost B. Net Present Value C. Projected value D. Discounted value E. Any of the above F. None of the above

Answer 1

The correct answer is letter "B": Net Present Value.

Step-by-step explanation:

Accounts Receivable is an accounting term used to refer to the money that customers owe to a corporation. The clients who may be individuals or businesses are the debtors because they owe money on credit from the goods or services the company provided. Accounts receivable are typically valued at Net Present Value (NPV) at the acquisition date.