Dell Computer Corporation Has Receivables of $2

question 68

Multiple Choice

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

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

---

Definitions:

Teratogenic Effects

The adverse outcomes or congenital malformations caused by exposure to teratogens in the prenatal environment.

Developmental Stage

A qualitatively distinctive, coherent pattern of behavior that emerges during the course of development.

Teratogen

Any agent or substance that can cause malformation or serious developmental abnormalities in an embryo or fetus.

WIC Program

A federal assistance program in the United States providing nutrition education and food vouchers for pregnant women, postpartum women, and young children.