When a company provides services for which cash will not be received until some future date,the company should record the amount charged as accounts receivable.

Question

Quizplus · Accepted Answer

Accounts receivable is an asset account that represents the amount of money a company expects to receive from customers who have purchased goods or services on credit. Therefore, when a company provides services for which cash will not be received until some future date, it should record the amount charged as accounts receivable.

When a Company Provides Services for Which Cash Will Not