- This topic has 3 replies, 2 voices, and was last updated 11 months ago by
Kim Smith.
Kim Smith.-
Posts
-
Noah098
- Topics: 936
- Replies: 352
- ☆☆☆☆☆
“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.
Kim Smith
- Topics: 87
- Replies: 6079
- ☆☆☆☆☆
Yes 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.”
Noah098
- Topics: 936
- Replies: 352
- ☆☆☆☆☆
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?
Kim Smith
- Topics: 87
- Replies: 6079
- ☆☆☆☆☆
We 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.
Noah098
Kim Smith- You must be logged in to reply to this topic.