Which of the Following Statements Is Correct Regarding Receivables

question 72

Multiple Choice

Which of the following statements is correct regarding receivables?

• A) Receivables are written promises of the purchaser to pay for goods or services.
• B) Receivables are claims held against customers and others for money, goods, or services.
• C) Receivables are non-financial assets.
• D) Receivables that are expected to be collected within a year are classified as noncurrent.

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Definitions:

Ledger

A ledger is a comprehensive collection of accounts where financial transactions are categorized and recorded in a double-entry bookkeeping system.

Journal Entries

Records of financial transactions in the accounting system, documenting the details of transactions and their impact on the accounts.

Debits

A transaction recorded in accounts that causes assets to grow or liabilities to shrink on a firm's balance sheet.

Credits

Accounting entries that increase liability or equity accounts, or decrease asset or expense accounts.