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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