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.