"The receivables collection period has increased from 49 to 91 days and management has significantly extended the credit terms given to customers.
This leads to an increased risk of RECOVERABILITY of receivables as they may be overvalued."
maam this is A really silly doubt, but I wanted to know it still. Do you think the 3rd sentence is correct?
I took the above sentence from kaplan exam kit.
But i feel it should have been : "This leads to an increased risk of IRRECOVERABILITY of receivables as they may be overvalued.
Ask the Tutor ACCA AA
recoverability/ irrecoverability of trade receivables
5y ago#1Yes that is what is meant - or they could have said "This leads to an increased risk REGARDING/ABOUT the recoverability of receivables which may be overvalued."
no maam my doubt is basically concerning to the following:
We are exposed to the risk of Irrecoverability/non-payment of debt.
How can we be exposed to risk of Recoverability of debt?
5y ago#3We are talking at cross purposes - I was saying yes to your interpretation! I was just showing that they could have used the word recoverability in the sentence. To say there is an increased risk about whether (or not) a debt is recoverable amounts to the same thing.
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