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)Promises of future payment by the customer are called accounts receivable.
C)Increases and decreases in cash are always recorded in the common stock account.
D)An account called Land is commonly used to record increases and decreases in both the land and buildings owned by a business.
E)Accrued liabilities include accounts receivable.

Question

Quizplus · Accepted Answer

Promises of future payment by a customer are indeed recorded as accounts receivable, reflecting the amount the customer owes to the business for goods or services delivered.

Identify the Statement Below That Is Correct