An account receivable is ________.
A)an accrual
B)a deferral
C)a cash sale to a customer
D)cash collected from a customer

Question

Quizplus · Accepted Answer

An account receivable is an accrual, which means that revenue has been earned but hasn't been received yet. This is because the business has provided the goods or services to the customer on credit and the payment is due at a later date. Option B is incorrect because a deferral refers to the postponement of recognizing revenue or expense. Option C is incorrect because a cash sale is a transaction where cash is received at the time of the sale. Option D is incorrect because it refers to cash already collected and not an amount owed by the customer.

An Account Receivable Is ________