Asked by Yusuf Gazali on Jul 17, 2024
Verified
The asset created by a business when it makes a sale on account is termed
A) accounts payable
B) prepaid expense
C) unearned revenue
D) accounts receivable
Accounts Receivable
Money owed to a company by its clients or customers for goods or services delivered but not yet paid for.
Accounts Payable
The amounts owed by a business to its suppliers or vendors for goods or services received that have not yet been paid for.
Unearned Revenue
Money received by an individual or company for a service or product that has yet to be provided or delivered.
- Understand the concept of accounts receivable and its significance in business transactions.
Verified Answer
Learning Objectives
- Understand the concept of accounts receivable and its significance in business transactions.
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