Question

Accounts receivable: Select one: A. are reported on the income statement. B. arise from the purchase of goods or services on credit. C. will be collected within the discount period or when due. D. are amounts owed to a business by its customers.

Answer 1

Answer:

Option (D) is correct.

Explanation:

Accounts receivables refers to a term that is used by the businesses when a company sells the goods on account or credit to its customers and customers promise to pay this amount at a later date. The accounts receivable is shown under the current assets. When a company receives the amount of receivables then it will increases its cash and decreases the accounts receivables.