Question

The Receipts and Payments A/c would begin with ___________ balance.

• A. No
• B. Debit
• C. Credit
• D. Either debit or credit

Answer 1

Answer: (D)

Either debit or credit

Account receivable account having debit balance. Account receivable are normally collected within a short period, such as 30 or 60 days. They are classified on the balance sheet as a current assets. The most common transaction creating a receivable is selling merchandise or services on credit.