Credit risk is an issue for financial instruments and must be disclosed because:
A) the company may default on its loan
B) the company may not have enough cash flow to pay suppliers
C) the other parties to financial instruments may not perform their obligations
D) the company may not perform their obligations

Question

Quizplus · Accepted Answer

Credit risk involves the possibility that the other parties to financial instruments may not fulfill their obligations, impacting the holder of the financial instrument.

Credit Risk Is an Issue for Financial Instruments and Must