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what is a question that should be asked about accounts receivable when forecasting? a.) do we risk insolvency? b.) how much product should we keep on hand to meet demand? c.) what will it cost to warehouse the product? d.) how many credit accounts will likely default?

Answer :

Do we risk insolvency that should be asked about accounts receivable when forecasting. Bankruptcy risk, also known as insolvency risk, is the possibility that a corporation will fail to pay its debt commitments. It is the likelihood of a company going bankrupt due to an inability to service its debt.

Insolvency is a transitory condition in which a company is unable to satisfy its debt and financial obligations. Insolvent individuals or businesses have liabilities that exceed their accounts assets. Insolvency is a transitory condition in which a company is unable to satisfy its debt and financial obligations. There are two types of insolvency: cash-flow and balance-sheet.

To learn more about Insolvency, click here.

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