Accounts receivable consist of the credit of the business. It can take the form of which of the following?
I. Trade credit
II. Consumer credit
A) I only
B) II only
C) Both I and II
D) Neither I nor II

Question

Quizplus · Accepted Answer

Trade credit comes from sales made to other businesses on credit, while consumer credit comes from sales made to individuals on credit. Both forms of credit make up a company's accounts receivable.

Accounts Receivable Consist of the Credit of the Business