Question

In __________, an organization provides a service to a customer who agrees to pay for the services after they are completed.

A. accounts payable
B. accounts receivable
C. inventory
D. none of these are correct

Answer 1

B) Accounts receivable is the correct option. It represents when a service is provided to a customer who agrees to pay after the completion of the service.

Step-by-step explanation:

In accounts receivable, an organization provides a service to a customer who agrees to pay for the services after they are completed.

Accounts receivable is a term used in accounting to represent the money owed to a business by its customers. When a service is provided but payment is not received immediately, the transaction is recorded as an account receivable.

For example, if a landscaping company mows a customer's lawn and sends them a bill to be paid in a month, that bill would be recorded as an account receivable until it is paid.