Question

How should trade receivables be classified?

a.

Only as to the extent secured and others, considered good.

b.

Only as doubtful.

c.

As to the extent secured, considered good; others, considered good; and doubtful.

d.

Only as doubtful and bad debts.

Answer: (c).As to the extent secured, considered good; others, considered good; and doubtful. Explanation:Trade receivables should be classified as to the extent secured, considered good; others, considered good; and doubtful.

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Q. How should trade receivables be classified?

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