The Normal Balance of Accounts Receivable Is a __________Because It

question 41

Multiple Choice

The normal balance of Accounts Receivable is a __________because it is a(n) _________ account.

• A)credit, liability
• B)debit, asset
• C)credit, stockholders' equity
• D)debit, expense

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Definitions:

Negotiable Instrument

A formal paper assuring the disbursement of a specified amount of funds, which could be paid either immediately when requested or at a scheduled time, with the document identifying the payor.

Demand Instrument

A type of draft that allows the payee to demand payment at any time from a holder.

Overdue

Pertaining to something that has not been completed, paid, or returned by its expected or agreed-upon deadline.

Liability

The legal responsibility to settle a debt or compensate for harm caused to someone else, often resulting from actions or negligence.