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MCQ Practice Single Best Answer Topic: Elements of Accounting

Q An account receivable is:

Question ID
#24241
Subchapter
Elements of Accounting
Action
Choose one option below

Choose Your Answer

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  • A an Asset ✔ ✖
  • B Owner’s Equity ✔ ✖
  • C a Liability ✔ ✖
Correct Answer: A

Explanation

The correct answer is:

A. an Asset ✅

👉 Explanation:

  • Accounts Receivable = the amount owed to a business by its customers for goods sold or services rendered on credit.

  • Since it represents future economic benefit (cash expected to be received), it is recorded as a Current Asset on the Balance Sheet.

  • It is not Owner’s Equity (which is the owner’s investment) and not a Liability (which is an obligation to pay others).

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