Big Rock Brewery Income Trust produces, markets, and distributes craft beers from its brewery in Calgary, with
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One of the reporting requirements for financial instruments is that a company must disclose if it has a high concentration of receivables from certain customers or categories of customers, because this may increase the company's level of credit risk as it depends greatly on the ability of those customers to pay their accounts. In accordance with this requirement, in its 2009 annual report, Big Rock Brewery disclosed that "substantially all of [its] accounts receivable are from provincial government liquor authorities."
How would this disclosure affect your assessment of Big Rock's level of credit risk?
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Related Book For
Financial Accounting A User Perspective
ISBN: 978-0470676608
6th Canadian Edition
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry
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