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Accounts receivable risks In the financial statements,there are many risks associated with an audit that must be considered.Identify and discuss five separate risks that may exist related to accounts receivable.
Profitable Use
The utilization of resources or assets in a manner that generates a significant positive return or profit.
Insufficient Capacity
A situation where a company does not have enough resources, such as manpower or machinery, to meet current or future production demands.
Contribution Margin
The difference between sales revenue and variable costs, indicating the amount contributing to covering fixed costs and profit.
Variable Cost
A cost that changes in proportion to the level of output or activity in a business.
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