Accounts receivable is an asset representing sales made on credit.

Question

Quizplus · Accepted Answer

Accounts receivable is indeed an asset that represents the amount of money owed to a company for goods or services that have been sold on credit to customers. This means that the company has not received payment for these sales yet, but they still have the right to collect payment from the customers. As such, accounts receivable is recognized as an asset on the company's balance sheet.

Accounts Receivable Is an Asset Representing Sales Made on Credit