Which of the Following Is a Difference Between Trade and Non-Trade

question 74

Multiple Choice

Which of the following is a difference between trade and non-trade receivables?

• A)Trade receivables are generally recorded using present value techniques versus non-trade receivables, which are generally recorded using market interest rates.
• B)Trade receivables are generally outstanding for long periods of time versus non-trade receivables, which are generally outstanding for short periods of time.
• C)Trade receivables are generally verbal contracts versus non-trade receivables, which are generally written contracts.
• D)Trade receivables are generally verbal contracts versus non-trade receivables, which are generally constructive contracts.

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Definitions:

Insurance Proceeds

The money received from an insurance company as a payout for claims made under an insurance policy.

Insured

A person or entity covered under an insurance policy, protected against specified losses or damages.

Damage

Loss or harm resulting from injury to a person, property, or reputation.

Workers' Compensation Insurance

Insurance that provides wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue their employer for negligence.