Nontrade Receivables, Such as Deposits with Utility Companies or Advances

question 80

Multiple Choice

Nontrade receivables, such as deposits with utility companies or advances to subsidiary companies, should be

• A)recorded in separate accounts and reported as noncurrent assets on the balance sheet
• B)recorded along with trade receivables in one account and included as part of the total receivables balance on the balance sheet
• C)recorded in separate accounts and separately reported on the balance sheet
• D)recorded in separate accounts and reported as an offset to retained earnings on the balance sheet

---

Definitions:

Registered

The status of having one's name or details officially recorded, typically in a specific list or database, for purposes such as legal acknowledgment or qualification.

Insider

(1) A corporate director or officer, or other employee or agent, with access to confidential information and a duty not to disclose that information in violation of insider-trading laws. (2) In bankruptcy proceedings, an individual, partner, partnership, corporation, or officer or director of a corporation (or a relative of one of these) who has a close relationship with the debtor.

Inside Information

Privileged, non-public information that could provide an unfair advantage in financial trading or decision-making.

Securities Exchange Act

A U.S. law enacted in 1934 to govern the trading of securities, such as stocks and bonds, in order to protect investors and maintain fair and efficient markets.