Which of the Following Is a Value-Added Activity

question 135

Multiple Choice

Which of the following is a value-added activity?

• A) Storing items.
• B) Moving items.
• C) Waiting for work.
• D) Assembling items.

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Definitions:

Trade Receivables

Trade receivables are amounts due to a business for goods sold or services provided on credit terms to customers.

Formal Instrument

A legal document expressing an agreement, obligation, or right enforceable by law.

Note Receivable

A financial asset representing a written promise for the repayment of a specific amount of money, plus interest, by a debtor to the lender at a future date.

Accounts Receivable Subsidiary Ledger

An Accounts Receivable Subsidiary Ledger is a detailed ledger that contains individual accounts for all debtors, tracking their sales on credit and payments.