Asked by calista Williams on May 26, 2024
Verified
Other receivables include nontrade receivables such as loans to company officers.
Other Receivables
Financial claims against other entities besides accounts receivable, such as interest receivable, income taxes refundable, or insurance claims receivable.
Nontrade Receivables
Monies owed to a company that are not related to the sale of goods or services, such as loans to employees.
Loans
Loans refer to borrowed money that must be repaid with interest by the borrower to the lender, used typically for personal, business, or education purposes.
- Differentiate between trade and nontrade receivables.
Verified Answer
OE
Olivia EvansMay 28, 2024
Final Answer :
True
Explanation :
Other receivables can include non-trade receivables such as loans extended to officers and employees of the company.
Learning Objectives
- Differentiate between trade and nontrade receivables.