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.

Question

Quizplus · Accepted Answer

Trade receivables represent amounts owed to the business by customers who have purchased goods or services on credit.

Which of the Following Statements Regarding Trade Receivables Is True