The Accounts Receivable Account Is

question 3

Multiple Choice

The Accounts Receivable account is

• A) a revenue, and it has a normal debit balance.
• B) an expense, and it has a normal credit balance.
• C) an asset, and it has a normal debit balance.
• D) a liability, and it has a normal credit balance.

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Definitions:

Cyclical

Refers to businesses or stocks that are heavily affected by economic changes, often experiencing higher growth in positive economic conditions and contractions during downturns.

Non-Cyclical

Refers to industries or stocks that are relatively unaffected by economic downturns or declines because they provide essential goods or services that continue to be in demand.

Cash Cycle

The amount of time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Cash Disbursement

Cash disbursement refers to the payment of money by a business to settle obligations, including operating expenses, investments, and financing activities.