Which of the following best describes accounts receivable?
A) The amount of cash owed by a company to its vendors for purchases of products or services on account.
B) The amount of cash collected by a company from its customers from the sale of products or services on account.
C) The amount of cash owed to a company by its customers from the sale of products or services on account.
D) The amount of cash not expected to be collected by a company from its customers from the sale of products or services on account (bad debts) .
Correct Answer:
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