An Account Receivable Represents

question 28

Short Answer

An account receivable represents
an asset with long-term use or value, such as land, buildings, and equipment.
an amount due from a customer who has purchased goods on credit.
an expense, such as rent, that is paid before the upcoming period in which it is due.
a nonphysical asset, such as a patent or trademark, that has economic value in the form of expected benefit.
an asset that can or will be converted to cash within the following year.

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Definitions:

Capacity Analysis

Calculating the production capacity an organization needs to fulfill the dynamic demands for its products.

Time-Driven

A method or approach that bases calculations, actions, or operations on the passage of time, often used in costing and scheduling.

Activity-Based Costing

A costing method that allocates overhead costs based on each product's activities or consumption rather than a standard rate.

Capacity Analysis

The act of determining the amount of production capability needed by an organization to meet its products' shifting demands.