Accounts Receivable
Is accounts payable a debit or credit?
Accounts payable is a credit. When a company receives goods or services on credit, it records a credit to accounts payable to indicate that it owes money to the supplier.
Is accounts payable an expense?
No, accounts payable is not an expense. Accounts payable represents the amount a company owes to its suppliers for goods or services received on credit. Expenses are costs incurred in the process of generating revenue, such as salaries, utilities, and rent.
Is accounts payable a current liability?
Yes, accounts payable is a current liability. It represents the amount owed by a company to its suppliers for goods or services that must be paid within one year.
Is accounts receivable a debit or credit?
Accounts receivable is a debit. When a company makes a sale on credit, it records a debit to accounts receivable to indicate that it expects to receive payment from the customer.
Is accounts receivable a current asset?
Yes, accounts receivable is a current asset. It represents the amount of money owed to a company by its customers for goods sold or services rendered on credit, and it is expected to be collected within one year.
Is accounts receivable a revenue?
No, accounts receivable is not revenue. Accounts receivable represents amounts owed to a company by its customers for goods sold or services rendered on credit. Revenue is earned when goods are delivered or services are performed, regardless of when payment is received.
Are accounts receivable an asset?
Yes, accounts receivable are an asset. They represent the amounts owed to a company by its customers for goods sold or services rendered on credit. As such, they have economic value and are expected to generate future cash inflows for the company.
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