The Major Risk Associated with Receivables Is Related to Which

question 46

Multiple Choice

The major risk associated with receivables is related to which of the following?

• A)They may be sold to a bank with recourse.
• B)They may be recorded as long-term when in fact they will be realized in the current period.
• C)They will not be realized for the entire amount due.
• D)They are pledged as collateral as disclosed in the footnotes to financial statements.

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Definitions:

Nefertiti

An ancient Egyptian queen, known for her beauty and as the royal consort of Pharaoh Akhenaten; her iconic bust is one of the most famous pieces of Egyptian art.

Hatshepsut

One of the few female pharaohs of ancient Egypt, who reigned successfully in the early 15th century BCE and expanded Egypt's trade and building projects.

Upper Egypt

The southern portion of Egypt, which stretches from Cairo to Aswan, historically known for its ancient cities and pharaonic sites.

Lotus

A plant associated with purity and beauty in various cultures, often found in water gardens and depicted in art and literature, symbolizing elegance and rebirth.