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 firm plans to borrow $2 million for working capital purposes from Austin First National Bank. In evaluating the loan request, the bank should place the most emphasis on

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