There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below.

Assertion (A):  Trade Payables is the amount payable against the purchase of goods and/or services that are taken in the normal course of business.
Reason (R):  Trade Receivables are the amount receivable against the sale of goods and/or services rendered in the normal course of business.

Assertion (A) and Reason (R) are correct but the Reason (R) is not the correct explanation of Assertion (A).

Trade payables are a combination of the creditor/s and the bills payable for goods purchased or services rendered. In accounting, the amount billed by the vendor or supplier is the amount logged under “accounts payable”. However, these are only logged if they are paid on credit.
Trade receivables are defined as the amount owed to a business by its customers following the sale of goods or services on credit. Also known as accounts receivable, trade receivables are classified as current assets on the balance sheet.