Non-Trade Receivables Should Be Reported Separately from Trade Receivables

question 191

Multiple Choice

Non-trade receivables should be reported separately from trade receivables.Why is this statement either true or false?

• A)It is true because trade receivables are current assets and non-trade receivables are long term.
• B)It is false because all current receivables must be grouped together in one account.
• C)It is true because non-trade receivables do not result from business operations and should not be included with accounts receivable.
• D)It is false because management can decide how to report receivables.

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Definitions:

Mean

Mean is the average of a set of numbers, calculated by dividing the sum of all values in the set by the number of values.

Standard Error

Estimates the variability of sample mean measurements around the population mean, indicating the precision of the sample mean as an estimate of the population mean.

Confidence Interval

Values derived from sample analyses, that fall within a range likely to encompass the parameter of an unseen population.

Sample

A subset of a population selected for measurement, observation, or questioning to provide statistical information about the population.