Trade receivables represent a stronger legal claim against the debtor than do non-trade receivables.

Name: Trade receivables represent a stronger legal claim against the debtor than do non-trade receivables.
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Question

Quizplus · Accepted Answer

Trade receivables and non-trade receivables both represent amounts owed to a company, but the strength of the legal claim against the debtor does not inherently differ between them; it depends on the terms and conditions agreed upon for each receivable.

Trade Receivables Represent a Stronger Legal Claim Against the Debtor