An Account Receivable Can Best Be Defined As

question 38

Multiple Choice

An account receivable can best be defined as:

• A)A payment to the owners.
• B)A sale of goods and services.
• C)A resource owned by the company.
• D)An amount owed by the company.

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Definitions:

Quick Assets

Assets that can be quickly converted into cash without significantly affecting their value, such as stocks and receivables.

Current Liabilities

Current liabilities are a company's debts or obligations that are due to be paid within a year, including accounts payable, short-term loans, and accrued expenses.

Debt to Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.

Total Liabilities

The total of all financial obligations a company owes to outside parties, including debts, accounts payable, and other obligations.