Accounts receivable often represents the majority of an organization's working capital.

Question

Quizplus · Accepted Answer

Accounts receivable refers to the money that a company is owed by its customers, and it is considered a major component of working capital as it represents the cash that will be coming into the business in the near future. The other components of working capital include inventory and cash on hand. Therefore, the statement is true.

Accounts Receivable Often Represents the Majority of an Organization's Working