The receivables of a company with installment receivables would normally be considered to be of higher quality than the receivables of a company that did not have installment receivables.

Question

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Installment receivables often come with higher risks of default compared to other types of receivables, as they are typically associated with customers who may not qualify for traditional financing, leading to a potentially lower quality of receivables.

The Receivables of a Company with Installment Receivables Would Normally