Question

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

Answer 1

Answer:

c) Debters + Bills playable

Answer 2

Trade receivables = Debtors + Bills receivable (Option a)

• Trade receivables refer to the amount which is yet to be received against the sale of goods or services provided by a company.

• It includes both debtors and bills receivables.

Debtors -

• Debtors refer to those people or firms to whom goods or services have been provided on credit and payment is yet to be received from them.

Bills receivebles -

• Bills receivables are kind of a formal bill which states that the customer agrees to pay the amount against goods or services used by him at some future date.

Both debtors and bills receivables are assets to the company.