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:

Mass Customization

A production technique that allows for the customization of products to meet individual customer needs at mass production prices.

Price Discrimination

Charging different prices to different buyers for products of like grade and quality.

Market Segments

Sub-groups of a market made up of people or organizations with one or more characteristics that cause them to demand similar product and/or services based on qualities such as needs, wants, or interests.

Market Size

Market Size is the total volume or value of sales that a particular market reaches or is expected to reach within a specified period.