Asked by Brooke Ramsey on Apr 26, 2024
Verified
When a company provides services for which cash will not be received until some future date,the company should record the amount billed as accounts receivable.
Accounts Receivable
The amount that customers are required to pay a business for the goods or services they have received but have not yet paid for.
Services
Economic activities that provide intangible benefits or satisfactions, not resulting in the ownership of a physical product.
Cash
Liquid currency and other assets that are readily convertible into money.
- Distinguish between accounts payable and receivable and their recognition in accounting records.
Verified Answer
RK
Robert Kilduff JrApr 28, 2024
Final Answer :
True
Explanation :
Accounts receivable represents the amounts that a company expects to receive in cash from its customers as a result of sales or services provided. If services have been provided but payment has not yet been received, the amount billed should be recorded as accounts receivable.
Learning Objectives
- Distinguish between accounts payable and receivable and their recognition in accounting records.
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