Carrington Company owes you $500 on account due within 15 days.Which of the following amounts on its statement of financial position would help you to determine the likelihood that you will be paid in full and on time?

Question

Quizplus · Accepted Answer

The amount of cash on hand and trade receivables listed on the statement of financial position would give insight into whether the company has the financial resources to pay its debts, including the amount owed to you. Cash on hand can be used to pay debts immediately, while trade receivables represent the amount of money owed to the company by its own customers. If the company has a large amount of outstanding trade receivables, it may indicate that it's having difficulty collecting payments on time, which could impact its ability to pay its own debts on time.

Carrington Company Owes You $500 on Account Due Within 15