Asked by Andrews Osei antwi on Jun 06, 2024
Verified
An account receivable is typically classified as a revenue.
Account Receivable
Money owed to a company by customers who have purchased goods or services on credit.
Classified Revenue
Classified revenue involves organizing a company's revenue into distinct categories for detailed financial analysis and reporting.
- Understand the categorization and documentation of fiscal activities.
Verified Answer
AJ
Ahmed JawoanJun 13, 2024
Final Answer :
False
Explanation :
An account receivable is a current asset on a company's balance sheet and represents the money that a customer owes the company for goods or services that have been sold but not yet paid for. It is not classified as a revenue because revenue is recognized when a sale is made, not when payment is received.
Learning Objectives
- Understand the categorization and documentation of fiscal activities.