What factors are considered when evaluating the collectability of an amount of consideration?

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Quizplus · Accepted Answer

The factors considered when evaluating the collectability of an amount of consideration are the ability and intention of the customer to pay the amount owed. These factors are important because if the customer does not have the means or the willingness to pay, then the amount may not be collectible. Payment terms, financial statement analysis, and rights and obligations are also important factors to consider, but they are not specifically related to the collectability of the amount of consideration.

What Factors Are Considered When Evaluating the Collectability of an Amount