{"id":18800,"date":"2025-06-13T09:30:31","date_gmt":"2025-06-13T09:30:31","guid":{"rendered":"https:\/\/gaviki.com\/blog\/?p=18800"},"modified":"2025-06-13T09:30:33","modified_gmt":"2025-06-13T09:30:33","slug":"which-of-the-following-companies-is-most-likely-to-have-a-significant-amount-of-accounts-receivable","status":"publish","type":"post","link":"https:\/\/gaviki.com\/blog\/which-of-the-following-companies-is-most-likely-to-have-a-significant-amount-of-accounts-receivable\/","title":{"rendered":"Which of the following companies is most likely to have a significant amount of accounts receivable"},"content":{"rendered":"\n<p>Which of the following companies is most likely to have a significant amount of accounts receivable? A restaurant A grocery store A hotel A manufacturing company<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\"><strong>The correct answer and explanation is:<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Correct Answer: A manufacturing company<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Explanation (300 words):<\/h3>\n\n\n\n<p>Among the given options \u2014 a restaurant, a grocery store, a hotel, and a manufacturing company \u2014 <strong>a manufacturing company<\/strong> is most likely to have a significant amount of <strong>accounts receivable<\/strong>.<\/p>\n\n\n\n<p><strong>Accounts receivable<\/strong> refers to the money owed to a business by its customers for goods or services that have been delivered but not yet paid for. This is common in industries where businesses sell products on <strong>credit terms<\/strong>, allowing customers (often other businesses) to pay at a later date, typically within 30 to 90 days.<\/p>\n\n\n\n<p><strong>Manufacturing companies<\/strong> often produce goods in large quantities and sell them to <strong>wholesalers, retailers, or other businesses<\/strong>, not directly to end consumers. These transactions are usually made on credit, generating significant accounts receivable as the manufacturer waits for payment after the goods have been shipped.<\/p>\n\n\n\n<p>In contrast:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Restaurants<\/strong> operate primarily on a <strong>cash or immediate payment basis<\/strong>. Customers pay for their meals at the time of service, so they carry little to no accounts receivable.<\/li>\n\n\n\n<li><strong>Grocery stores<\/strong> also receive payment at the point of sale. Even if they allow small-scale store credit in rare cases, the volume is minimal compared to manufacturing operations.<\/li>\n\n\n\n<li><strong>Hotels<\/strong> might offer corporate billing or group bookings that involve delayed payment, but the majority of their customers (especially individual guests) pay upon check-in or checkout. This limits the size of accounts receivable in most hotel operations.<\/li>\n<\/ul>\n\n\n\n<p>Therefore, due to the <strong>credit-based nature of business-to-business (B2B) transactions<\/strong>, a manufacturing company is far more likely to have large and recurring accounts receivable balances. These receivables are a normal part of their working capital cycle and are carefully monitored to ensure steady cash flow and manage credit risk.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Which of the following companies is most likely to have a significant amount of accounts receivable? A restaurant A grocery store A hotel A manufacturing company The correct answer and explanation is: Correct Answer: A manufacturing company Explanation (300 words): Among the given options \u2014 a restaurant, a grocery store, a hotel, and a manufacturing [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-18800","post","type-post","status-publish","format-standard","hentry","category-quiz-questions"],"_links":{"self":[{"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/posts\/18800","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/comments?post=18800"}],"version-history":[{"count":1,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/posts\/18800\/revisions"}],"predecessor-version":[{"id":18802,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/posts\/18800\/revisions\/18802"}],"wp:attachment":[{"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/media?parent=18800"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/categories?post=18800"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gaviki.com\/blog\/wp-json\/wp\/v2\/tags?post=18800"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}