Accounts receivable include
A)trade credit.
B)consumer credit.
C)inventories.
D)trade credit and consumer credit.

Question

Quizplus · Accepted Answer

Accounts receivable include both trade credit (credit extended by a business to another business for the purchase of goods and services) and consumer credit (credit extended to consumers for the purchase of goods and services). Inventories are not considered accounts receivable; they are assets held for sale.

Accounts Receivable Include