Basics of Accounting › Elements of Accounting › Question #24241
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QAn account receivable is:

ID: #24241 Elements of Accounting 59 views
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#24241Q ID
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Elements of AccountingTopic
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  • A an Asset ✔ ✖
  • B Owner’s Equity ✔ ✖
  • C a Liability ✔ ✖
Correct Answer: Option 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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