Advances to company employees should be included in the Accounts Receivable balance.

Question

Quizplus · Accepted Answer

Advances to company employees are considered an asset, but they are not included in Accounts Receivable. Instead, they are recorded as a separate asset account, often referred to as "Employee Advances" or "Advances to Employees," because they do not represent amounts owed to the company from customers for goods or services provided.

Advances to Company Employees Should Be Included in the Accounts