Non-trade receivables should be reported separately from trade receivables.Why is this statement either true or false?
A)It is true because trade receivables are current assets and non-trade receivables are long term.
B)It is false because all current receivables must be grouped together in one account.
C)It is true because non-trade receivables do not result from business operations and should not be included with accounts receivable.
D)It is false because management can decide how to report receivables.

Question

Quizplus · Accepted Answer

Non-trade receivables should be reported separately from trade receivables because they do not arise from the primary business operations and should not be mixed with accounts receivable, which are typically trade receivables.

Non-Trade Receivables Should Be Reported Separately from Trade Receivables