Dell Computer Corporation Has Receivables of $2

Multiple Choice

Dell Computer Corporation has receivables of $2.5 million and inventory worth $1.8 million. The company plans to borrow $2 million for working capital purposes from First National Bank. In evaluating the loan request, the bank should place the most emphasis on:

A) the matching principle.
B) the revenue recognition principle.
C) the going-concern assumption.
D) the assumption of arm's-length transactions.