1
Question
Accounts receivable is an item of __________.
Accounts receivable is an item of __________.
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Solution
The correct option is B asset
Assets are classified as Current Assets and Fixed Assets.
Fixed Assets are those which are of permanent nature and these exists in the business for a long duration. Like Land & Building, Plant & Machinery etc.
Current Assets are evolve during the process of business. These are fluctuating and changes with each business transaction. Like Inventory, Sundry Debtors, Cash and Bank balances, accounts receivables.
When goods are sold on credit to the customer against which money is going to be received in short period of time, it is called accounts receivables.
Accounts Receivables is an item of assets and shown in balance sheet under the heading "Current Assets".
Assets are classified as Current Assets and Fixed Assets.
Fixed Assets are those which are of permanent nature and these exists in the business for a long duration. Like Land & Building, Plant & Machinery etc.
Current Assets are evolve during the process of business. These are fluctuating and changes with each business transaction. Like Inventory, Sundry Debtors, Cash and Bank balances, accounts receivables.
When goods are sold on credit to the customer against which money is going to be received in short period of time, it is called accounts receivables.
Accounts Receivables is an item of assets and shown in balance sheet under the heading "Current Assets".
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