Receivables are usually a significant portion of:
A)total current liabilities.
B)total sales.
C)total current assets.
D)total stockholders' equity.

Question

Quizplus · Accepted Answer

Receivables represent amounts owed to a company by its customers or clients, and they are considered part of the current assets section of the balance sheet. Although they are not as liquid as cash or marketable securities, they are expected to be converted into cash within the current operating cycle of the business, typically within one year. Receivables do not affect current liabilities, stockholders' equity or sales directly; however, they do impact cash flow and net income indirectly.

Receivables Are Usually a Significant Portion Of