Although the opportunity costs for accounts receivable may be quite large, the largest current asset balances are usually in______.
A) cash
B) accounts receivable
C) inventories
D) property, plant, and equipment
E) short-term investments

Question

Quizplus · Accepted Answer

Inventories typically represent the largest current asset balances for many companies, especially those in the manufacturing and retail sectors, because they require significant amounts of materials and goods to be kept on hand to meet customer demand.

Although the Opportunity Costs for Accounts Receivable May Be Quite