Why is accounts receivable an asset?
You don t have or own money that you are going to receive some time in the future. I don t get it.
- ScottLv 71 month ago
It certainly isn't a liability.
- olliverLv 61 month ago
Accounts receivable are amounts which are owed to a business by its customers for goods and services supplied to them on credit terms. The money is owed to the business so it is an asset.
- babyboomer1001Lv 71 month ago
They are receivables, not money lent to someone that you hope they will pay you back.