The Asset That Results When a Customer Buys Goods or Services

question 28

Multiple Choice

The asset that results when a customer buys goods or services on credit is

• A) notes receivable.
• B) accounts payable.
• C) Cash.
• D) accounts receivable.

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Definitions:

Merchant

An individual or company engaged in the buying and selling of goods for profit.

Buyer

An individual or entity that purchases goods or services from another party.

Ownership Rights

Legal rights that confer the ability to use, control, and dispose of property or assets.

Passing of Title

The formal process of transferring ownership rights of a property from one entity to another.