Final answer:
Receivables are indeed monetary claims against others, representing money a business is set to receive for goods or services provided on credit. They are considered an asset on a company's balance sheet and are a measure of expected future benefits.
Step-by-step explanation:
The statement 'Receivables are monetary claims against others' is true. In the context of business and accounting, receivables refer to the money that a company is entitled to receive because it has provided customers with goods or services. Essentially, receivables represent a legal obligation others have to pay the company, often as a result of credit sales. Examples include accounts receivable, which are amounts customers owe for credit purchases that are expected to be collected in the short term. The value of receivables is recorded on the balance sheet as an asset because it is an expected future benefit that the company will receive.
When considering the value of receivables, factors such as the creditworthiness of debtors are important. If a borrower has been consistently late on loan payments, their receivables would appear less valuable because of the increased risk of default. Banks and other businesses need to assess the likelihood of repayment when valuing their receivables and determining their overall financial health.