________ Represent the Right to Receive Cash in the Future

question 23

Multiple Choice

________ represent the right to receive cash in the future from customers for goods sold or for services performed.

• A) Accounts Receivable
• B) Accounts Payable
• C) Equity
• D) Expenses

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Definitions:

Credit Entries

Entries made on the right side of an account in double-entry bookkeeping, indicating an increase in liabilities, revenue, or equity, or a decrease in assets.

Revenues

The total income generated by a company from its normal business activities, often from the sale of goods and services to customers.

Cash Receipts

These are the amounts of money received by a company during a specific period, including all forms of cash inflow from operations, financing, and investing activities.

Cash Payments

Transactions in which payment for goods or services is made in cash at the time of the transaction.