In assessing the quality of receivables it is important to consider the revenue recognition methods used by a company.

Name: In assessing the quality of receivables it is important to consider the revenue recognition methods used by a company.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The revenue recognition method used by a company can affect the quality of its receivables, as it impacts when and how revenue is recognized and the potential for future bad debts. Therefore, it is important to consider when assessing the quality of receivables.

In Assessing the Quality of Receivables It Is Important to Consider