Which of the following statements is true?
A)Accounts receivable are more liquid than cash.
B)Notes receivable are always due in 30 days.
C)Notes receivable are longer in term than accounts receivable.
D)Accounts receivable are liabilities.

Question

Quizplus · Accepted Answer

Notes receivable are longer-term forms of credit, often due in 90 days to several years, while accounts receivable are typically due within a shorter, 30- to 60-day timeframe. B is incorrect because notes receivable may have varying maturity dates beyond 30 days, and A and D are incorrect because accounts receivable are assets, not liabilities, and are generally less liquid than cash.

Which of the Following Statements Is True