Question

Which of the following best describes accounts receivable? The amount of cash owed by a company to its vendors for purchases of products or services on account. The amount of cash collected by a company from its customers from the sale of products or services on account. The amount of cash owed to a company by its customers from the sale of products or services on account. The amount of cash not expected to be collected by a company from its customers from the sale of products or services on account (bad debts).

Answer 1

The correct answer is The amount of cash owed by a company to its vendors for purchases of products or services on account.

Step-by-step explanation:

Accounts receivable is the name of the account where the increases and cuts related to the sale of different items to products or services are recorded. This account is made up of bills of exchange, credit titles and promissory notes in favor of the company.

Accounts receivable, therefore, grant the right to the organization to require subscribers of credit titles to pay the documented debt. This is a future benefit accredited by the account holder.