Which of the Following Statements Is True Regarding Accounts Receivable

question 62

Multiple Choice

Which of the following statements is true regarding accounts receivable?

• A) It is evidenced by a chattel paper or an instrument.
• B) It falls under the category of intangible collaterals.
• C) In the context of defining collateral, accounts receivable is used as a catchall phase for interests not otherwise covered unless they are specifically excluded.
• D) It includes stocks, bonds and other investment securities.

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Definitions:

Jointly Controlled Operations

Business activities that are controlled and managed by two or more parties under a joint agreement, sharing both the benefits and obligations.

Jointly Controlled Assets

Assets that are controlled and managed under a contractual arrangement by two or more parties, each having shared control over the economic benefits.

Contractual Agreement

An official document that outlines the terms and conditions agreed upon between two or more parties.

Strategic Financial

Pertaining to the use of financial resources and planning to achieve the long-term objectives of an organization.