[amp_mcq option1=”Trade creditors only” option2=”Trade debtors only” option3=”Trade debtors and bill receivable” option4=”Trade creditors and bill payable” correct=”option3″]<\/p>\n
The correct answer is C. Trade debtors and bill receivable.<\/p>\n
Trade debtors are amounts owed to a company by its customers for goods or services that have been sold on credit. Bill receivable is a document that acknowledges a debt and promises payment at a future date.<\/p>\n
Trade creditors are amounts owed by a company to its suppliers for goods or services that have been purchased on credit. Bill payable is a document that acknowledges a debt and promises payment at a future date.<\/p>\n
Therefore, the word ‘receivables’ includes trade debtors and bill receivable, but not trade creditors and bill payable.<\/p>\n
Here is a more detailed explanation of each option:<\/p>\n
[amp_mcq option1=”Trade creditors only” option2=”Trade debtors only” option3=”Trade debtors and bill receivable” option4=”Trade creditors and bill payable” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-46006","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n