When an Organization Sells on Credit,it Is Essentially Reducing the Risk

question 75

True/False

When an organization sells on credit,it is essentially reducing the risk that a portion of the accounts receivable balance will never be collected.

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Definitions:

Conditional Endorsement

An endorsement on a negotiable instrument that imposes conditions on the use or payment of the instrument.

Payment

The transfer of money or goods from one party to another as compensation or for goods and services received.

Restrictive Endorsement

A limitation placed on a check or other negotiable instrument, specifying conditions under which it can be transferred.

Conditional Endorsement

Conditional endorsement refers to a modification or restriction added to a document or contract that specifies certain terms or conditions must be met.