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Asked by breana norris on May 30, 2024

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Which of the following is a current asset?

A) Accounts payable
B) Accounts receivable
C) Revenue
D) Accumulated depreciation

Current Asset

An asset that is expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer.

Accounts Receivable

Funds that customers have yet to pay to a business for the goods or services that have already been provided to them.

Accumulated Depreciation

The total depreciation of an asset up to a single point in time, reflecting its decreased value from wear and tear or obsolescence.

  • Identify the methodology and types of current assets, noting any exceptions.
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Verified Answer

BA
Baylee AblesJun 01, 2024
Final Answer :
B
Explanation :
Accounts receivable is a current asset because it represents money that a company is owed from customers for products or services that have been sold but not yet received payment for. A) Accounts payable is a liability, C) Revenue is not an asset but rather an inflow of economic resources, and D) Accumulated depreciation is a contra-asset account representing the accumulated depreciation of a company's fixed assets.

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