The following note disclosure appeared in a company’s recent…
The following note disclosure appeared in a company’s recent annual report:”Our receivables are generally not collateralized. Included in notes and accounts receivable are notes with varying interest rates totaling $12 million at December 31. At December 31, 39% of our consolidated receivables related to our United States government contracts, primarily for projects in the Middle East.”Explain why the company indicates that its receivables are generally not collateralized. What significance does this have to the reader?