Which of the following accounts presents the greatest inherent risk?
A) Cash.
B) Marketable securities.
C) Accounts receivable.
D) Sales.

Question

Quizplus · Accepted Answer

Accounts receivable presents the greatest inherent risk because there is a possibility that customers may not be able to make their payments, leading to bad debts. This risk can be reduced through credit checks, monitoring of customer payment history, and timely follow-up on overdue accounts. However, there is still a higher risk associated with this account than with cash, marketable securities, or sales.

Which of the Following Accounts Presents the Greatest Inherent Risk