Accounts Receivable Consists of the Credit of the Business

question 39

Multiple Choice

Accounts receivable consists of the credit of the business. It can take the form of which of the following?
I. Trade credit
II. Consumer credit

• A) I only
• B) II only
• C) Both I and II
• D) Neither I nor II

---

Definitions:

Market Value

The estimated price at which a good or service would trade in a competitive marketplace.

Board of Directors

A group of individuals elected by shareholders to oversee the management and make major decisions for a corporation.

Officer

An individual holding a position of authority or command, especially within a governmental, military, or corporate structure, responsible for enforcing laws or policies.

Shareholders

Investors in a corporation, who own the corporation.