Identify the statement below that is correct.
A) When a future expense is paid in advance, the payment is normally recorded in a liability account called Prepaid Expense.
B) An account called Land is commonly used to record increases and decreases in both the land and buildings owned by a business.
C) Promises of future payment by the customer are called accounts receivable.
D) Accrued liabilities include accounts receivable.
E) Increases and decreases in cash are always recorded in the owner's capital account.

Question

Quizplus · Accepted Answer

Accounts receivable represent amounts owed by customers for goods or services provided on credit, indicating promises of future payment.

Identify the Statement Below That Is Correct