How Would Trade Debtors Normally Be Classified in a Statement

question 56

Multiple Choice

How would trade debtors normally be classified in a statement of financial position?

• A)as a current liability.
• B)as a current asset.
• C)as a non-current liability.
• D)as a reserve.

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Definitions:

Narrow Span

Refers to a managerial structure where each manager oversees a small number of subordinates, allowing for more close-knit supervision and communication but potentially increasing organizational layers.

Cost Leadership

is a business strategy aimed at achieving the lowest operational costs in the industry to offer products or services at competitive prices, often resulting in a high market share.

Organic Structure

An organizational configuration that is flexible, adaptive, and decentralized, designed to enable rapid response to changes.

Organizational Strategy

A plan of action designed to achieve long-term or overall goals and objectives of an organization.