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.

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Definitions:

Nonattainment Area

A geographical area that does not meet federally established ambient air quality standards.

Plastics Factory

A manufacturing facility where plastic materials are processed and shaped into products.

Emission Rates

The quantity of pollutants released into the atmosphere by a specific source over a given period.

Innocent Landowner

A property owner who is not responsible for any environmental damage caused by previous owners.