Explain what Accounts receivable mean.

Question:

Explain what Accounts receivable mean.

Current Assets:

Current assets are liquid assets that can be converted into cash within a period of one year or less. The management and financing of current assets are taken care of, by the working capital. Current assets include cash, accounts receivable, prepaid expenses, inventory, etc.

Answer and Explanation: 1

Become a Study.com member to unlock this answer!

View this answer


When a business sells goods on credit to its customers, it extends a credit period to them for making payments. Until the payment is made by the...

See full answer below.


Learn more about this topic:

Loading...
Accounts Receivable: Definition, Process & Examples

from

Chapter 7 / Lesson 1
32K

Learn what accounts receivables are and why they're important. Understand the definition of accounts receivable, look at different types of accounts receivable, and examine examples.


Related to this Question

Explore our homework questions and answers library