Notes or accounts receivable that result from sales transactions are often called
A) nontrade receivables
B) trade receivables
C) merchandise receivables
D) sales receivables

Question

Quizplus · Accepted Answer

Trade receivables refer to the amount that a business is owed by its customers for goods or services sold on credit. Nontrade receivables may include items such as loans to employees or advances to suppliers. Merchandise receivables specifically refer to receivables resulting from the sales of inventory. Sales receivables is not a commonly used term in accounting.

Notes or Accounts Receivable That Result from Sales Transactions Are