The Two Major Types of Receivables Are Accounts Receivable and Trade

question 99

True/False

The two major types of receivables are accounts receivable and trade receivables.

---

Definitions:

Operating Expenses

Costs related to the day-to-day operations of a business, excluding the cost of goods sold.

Net Income

Profit calculated after deducting all operating expenses, interest, taxes, and any other charges from total revenues.

Service Firm

An enterprise offering non-physical products or services to its customers, as opposed to tangible items.

Merchandising Company

A business that purchases goods in finished form for resale to consumers, generating revenue through sales activities.