Accounts receivable consists of the credit of the business. It can take the form of which of the following?
I. Trade credit
II. Consumer credit
A) I only
B) II only
C) Both I and II
D) Neither I nor II

Question

Quizplus · Accepted Answer

Accounts receivable can take the form of both trade credit (credit extended to businesses by their suppliers) and consumer credit (credit extended to individual consumers by businesses). Therefore, both options I and II are correct.

Accounts Receivable Consists of the Credit of the Business