Dell Computer Corporation Has Receivables of $2

question 66

Multiple Choice

Dell Computer Corporation has receivables of $2.5 million and inventory worth $1.8 million. The company plans to borrow $2 million for working capital purposes from First National Bank. In evaluating the loan request, the bank should place the most emphasis on:

• A) the matching principle.
• B) the revenue recognition principle.
• C) the going-concern assumption.
• D) the assumption of arm's-length transactions.

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