Advances to Employees Are Referred to as Accounts Receivable

question 105

True/False

Advances to employees are referred to as accounts receivable.

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Definitions:

Accounting Equation

The fundamental equation of accounting stating that Assets = Liabilities + Owners’ Equity.

Common Stock

Equity ownership in a corporation, with voting rights and potential dividends.

Accounts Payable

The sum of funds that a company is required to pay to its suppliers for goods and services obtained on credit.

Retained Earnings Account

An equity account that represents the cumulative earnings of a company that have not been distributed to shareholders as dividends.