Which Statement Best Describes Accounts Receivable

question 51

Multiple Choice

Which statement best describes accounts receivable?

• A)An arrangement in which a seller allows the purchaser a period of time before requiring payment.
• B)The equivalent to a short-term loan made by the seller to a purchaser of an amount equal to the purchase price.
• C)A sum of money owed to the seller as a result of having sold goods on credit.
• D)An arrangement in which the purchasing company delays paying until after the due date.

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Definitions:

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A green vegetable with a large flowering head that is eaten as a vegetable.

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A unit of currency used in the United Kingdom and other territories.

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An economic principle that refers to the ability of a party to produce a particular good or service at a lower opportunity cost than another.

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A staple grain consumed worldwide, serving as a primary food source for a large portion of the global population.