Question

Trade receivables implies
(a) Debtors + Bills receivables
(b) Debotrs - Bill receivables
(c) Debtors + Bills payable
(d) Debtors - Bills payable​

Answer 1

Answer:

a

Explanation:

Trade receivable implies both debtors and bills receivable

Answer 2

Option (a). Trade receivables implies Debtors + Bills receivables.

Explanation:

• Trade receivables are the current assets that include the total amount the customers owed to the business.
• It is the value of the goods and services that a business has already sold and delivered to its customers but hasn't received the payment for it yet.
• Trade receivable includes debtors as well as the bills receivables as both owe the business money but are yet to make the payment for the same.
• Therefore, trade receivables imply debtors + bills receivables.