Which of the Following Statements Regarding Trade Receivables Is True

question 9

Multiple Choice

Which of the following statements regarding trade receivables is true?

• A) Trade receivables owe money to the business.
• B) Cash sales give rise to trade receivables.
• C) Trade receivables are suppliers of the business who have supplied goods on credit.
• D) Trade receivables are a non-current asset of a business.

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Definitions:

Banquet

A large, formal meal for many people, often followed by speeches or entertainment.

Autocratic Tone

A communication style characterized by authoritative, dictatorial, and controlling language.

Instructions

Detailed information telling how something should be done, operated, or assembled.

Contract

A legally binding agreement between two or more parties that outlines terms and conditions, rights, and duties related to a specific transaction or arrangement.