Which statement best describes accounts receivable?
A)An arrangement in which a seller allows the purchaser a period of time before requiring payment.
B)The equivalent to a short-term loan made by the seller to a purchaser of an amount equal to the purchase price.
C)A sum of money owed to the seller as a result of having sold goods on credit.
D)An arrangement in which the purchasing company delays paying until after the due date.

Question

Quizplus · Accepted Answer

Accounts receivable is the amount owed to the seller as a result of selling goods on credit. It represents the amount of money that a company expects to receive from its customers who bought goods on credit. Option A describes credit terms, option B describes a trade credit, and option D describes a payment delay.

Which Statement Best Describes Accounts Receivable