Questions: The quality of receivables refers to the likelihood of collection without loss. True or False

The answer is True.

The quality of receivables indeed refers to the likelihood of collection without loss. This concept is important in financial analysis and accounting, as it assesses the probability that the amounts owed by customers will be collected in full and on time. High-quality receivables indicate a strong likelihood of collection, while low-quality receivables suggest potential issues with collecting the owed amounts.