Assets created by selling goods and services on credit are:
A) Accounts payable.
B) Accounts receivable.
C) Liabilities.
D) Expenses.
E) Equity.

Question

Quizplus · Accepted Answer

Assets created by selling goods and services on credit are referred to as accounts receivable, which are an asset as they represent money owed to the business by its customers. Accounts payable (A) are liabilities, expenses (D) are costs incurred by the business, and equity (E) represents the ownership interest of the business.

Assets Created by Selling Goods and Services on Credit Are