Bills receivable account is a/an ___________.

Expense Account

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Asset Account

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Liability Account

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Revenue Account

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Solution

The correct option is A Asset Account
Bills receivable is simply an amount receivable from the customer against which a negotiable instrument in the form of bill of exchange is received from a customer. Its a short term asset like other current assets like debtors, stock, etc. Accordingly bills receivables are treated as current assets and shown in the balance sheet.

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