Which of the following receivables would most likely be reported separately in a firm's financial statements, and why?
A salary advance to an employee, because it is not considered to be an "arm's length" transaction
A credit-based sale to a corporate client, because it is considered to be an "arm's length" transaction
A credit-based sale to a corporate client, because it is not considered to be an "arm's length" transaction
A salary advance to an employee, because it is considered to be an "arm's length" transaction