________ represent the right to receive cash in the future from customers for goods sold or for services performed.

Question

Quizplus · Accepted Answer

Accounts receivable represents the amount of money that a business expects to receive from its customers who have bought goods or services on credit. It is considered as an asset on the balance sheet because it represents the right to receive cash in the future. Accounts payable, on the other hand, represent the obligation to pay cash in the future for goods or services received. Equity represents ownership in the business, while expenses represent the costs incurred by the business in generating revenue.

________ Represent the Right to Receive Cash in the Future