The accounts receivable balance can be misleading because:

A) it may contain substantial amounts which will never be collected.
B) the figures represent money that is incoming as opposed to tangible assets.
C) costumers often delay payment which blows up the balance.
D) it is not adjusted for the bad debt reserve.

The accounts receivable balance includes all outstanding balances owed by customers, but it may not reflect the actual amount of money that will be collected. Some customers may never pay their debts, either because they are unable or unwilling to do so. As a result, the accounts receivable balance may be inflated or misleading.