Question

Accounts receivable is classified on the balance sheet as a current asset. current liability. noncurrent asset. long-term liability.

Answer 1

Answer: Current Asset

Explanation:

Accounts receivable is defined as money owed to the company by its customers for goods or services rendered that is to say  When a company provides goods or render services to another customer or  company but is awaiting payment on a short term basis,  then the company documents the accounts receivable on a balance sheet as a current asset.

it is recorded as current asset because under legal obligations, the company will receive cash in due time,usually within a year that is why companies who render credit based goods and services set payment terms and conditions to monitor and ensure payment because this affects the company liquidity.