Asked by ThuveNdran Thuven10 on May 23, 2024
Verified
Accounts Receivable is:
A) Amounts owed from customers.
B) Amounts owed from customers plus cash sales.
C) Usually not a meaningful account to a company's financial accounting reports.
D) Part of the Chart of Accounts only if a company has cash sales as well.
Cash Sales
Transactions where payment is made in cash at the time of purchase.
Financial Accounting Reports
Documents that summarize the financial performance and position of an organization, including income statements, balance sheets, and cash flow statements.
- Acquire knowledge of the various parts and functions present in QBO, such as Reports, Transactions, Settings, and the Chart of Accounts.
Verified Answer
PB
Payton BatchelderMay 30, 2024
Final Answer :
A
Explanation :
Accounts Receivable is the amount of money owed by customers to a company for goods or services purchased on credit. It is an important account in a company's financial accounting reports as it represents money that the company expects to receive in the future. Option B is incorrect as cash sales are not included in Accounts Receivable. Option C is incorrect as it is a very meaningful account in financial accounting. Option D is incorrect as Accounts Receivable is a part of the Chart of Accounts regardless of whether a company has cash sales or not.
Learning Objectives
- Acquire knowledge of the various parts and functions present in QBO, such as Reports, Transactions, Settings, and the Chart of Accounts.
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