Farmers State Bank is considering a $500,000 loan to Willard Manufacturing. Three items appearing on Willard's balance sheet are:

a. Cash on hand and in the bank, $20,000.

b. Accounts receivable of $60,000, less an allowance for uncollectibles of $15,000.

c. Accumulated Depreciation of $36,000.

1. Which of the balance sheet items is most relevant for the bank's loan decision?

--- My answer was cash since it has the most liquidity. Am I correct?

2. Which of the balance sheet items is most representationally faithful?

-- My answer was Accumulated Depecretation because there is a forumula to calculate it.

Are my answers correct?