Which of the following statements regarding receivables is correct? A. Receivables occur when a business loans money to another party. B. Each receivable transaction involves three parties. C. A receivable is the right to pay cash in the future from a current receivable transaction. D. A receivable occurs when a business makes a cash sale of goods or services to another party.

The correct answer is letter "A": Receivables occur when a business loans money to another party.

Explanation:

Account receivables are the result of providing goods or services to customers on credit. The receivable is a promissory note of repayment in a determined period and considering the increase of the purchase value because of interest. Accounts receivable help the producer to remove unnecessary inventory of its warehouse by allowing customers to take the products on account.

Receivables can also be the result of lending money to another firm.

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explanation:

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