Accounts receivable in an existing business:
A)are rarely worth their face value.
B)unlike inventory,are often worth their face value.
C)appreciate over time due to interest and penalties.
D)are not a significant consideration when buying an existing business.

Question

Quizplus · Accepted Answer

Accounts receivable are rarely worth their face value due to potential uncollectible accounts, discounts, or allowances that may need to be applied.

Accounts Receivable in an Existing Business