Final answer:
Inventory is not a component of Accounts Receivable (A/R) funds; it refers to the goods a business intends to sell, whereas A/R includes cash receipts, account receivables, and allowances.
Step-by-step explanation:
To answer the question, the component that is not a part of Accounts Receivable (A/R) funds is C) Inventory. Accounts Receivable (A/R) typically consists of cash receipts, account receivables, and allowances. Cash receipts represent the cash collected from customers, account receivables are the outstanding invoices a company has or the money customers owe the company, and allowances are reductions in the amount owed by a customer due to returns, discounts, or other adjustments. Inventory, on the other hand, represents the goods and materials a business holds for the ultimate goal of resale which is not included in A/R funds. Therefore, Inventory is not a component of A/R funds.