In a statement of financial position,trade debtors would normally be classified as a:
A) current liability.
B) current asset.
C) non-current liability.
D) reserve.

Question

Quizplus · Accepted Answer

Trade debtors represent money owed to the company by customers for goods or services that have been already sold or provided but not yet paid for. Hence, they are classified as a current asset in the statement of financial position, because they are expected to be received within one year or less. Current assets are those likely to be realized in cash or consumed within a year from the statement date.

In a Statement of Financial Position,trade Debtors Would Normally Be