Which of the Following Is the Major Risk Associated with Receivables

question 95

Multiple Choice

Which of the following is the major risk associated with receivables?

• 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:

Strategic Decision

A significant choice made by top-level management that sets the direction and influences the future success of an organization.

Pre-Existing Idea

A concept, belief, or opinion that was formed before the current context or situation.

Collaborative Technologies

Digital tools and platforms that facilitate cooperation and teamwork among users, regardless of their physical location.

Groupware

Software designed to facilitate collaborative work or projects by multiple users within different locations.