Answer: C. An accounts receivable is always created.
<span>The basic idea behind Accounts Receivable is based on its name. Accounts Receivable is the money you have earned, but which has not yet been received ( it's not "cash in hand" yet). It means you have already provided a service or delivered a product to the customer (cash outflow), but have not yet received your payment (cash inflow).</span><span> If a customer doesn't pay at the time of sale, it means that an accounts receivable should be created.</span>
