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.

---

Definitions:

Economic Independence

The state of having sufficient personal wealth to live, without needing to depend on income from some form of employment.

Access Capital

The ability of a business or individual to obtain funds or resources needed for investment purposes.

Innovative Ideas

Novel and creative thoughts or concepts that have the potential to bring about change or solve problems.

First-mover Advantage

The competitive advantage gained by the initial significant occupant of a market segment.