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:

Lingual

Lingual pertains to the tongue, often regarding its anatomical structure, functions, or associated phenomena like lingual nerves or lingual tonsils.

Palatine

Pertaining to the palate, especially referring to bones or structures associated with the roof of the mouth.

Larynx

The voice box located in the throat, which contains the vocal cords and is involved in breathing, producing sound, and protecting the trachea against food aspiration.

Adam's Apple

The prominent protrusion in the neck, formed by the thyroid cartilage of the larynx, more prominent in males.