Which of the Following Statements Regarding Receivables Is Correct

question 106

Multiple Choice

Which of the following statements regarding receivables is correct?

• A) Each receivable transaction involves three parties.
• B) Receivables occur when a business loans money to another party.
• C) A receivable occurs when a business makes a cash sale of goods or services to another party.
• D) A receivable is the right to pay cash in the future from a current receivable transaction.

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Definitions:

Permissiveness

A state or characteristic of allowing or accepting behavior that others might restrict or forbid.

Carefree Disposition

A personality trait characterized by a lack of worry or stress, often resulting in a positive and easy-going attitude.

Fundamental Human Values

Core beliefs and principles that are widely regarded as the basis for ethical behavior and decision making.

Adamant Resolve

A firm determination or unwavering commitment to a course of action.