Is Accounts Receivable an Asset?
Here we will the answer the very basic question that “Is Accounts Receivable an Asset”? Before giving the answer of this question, you must understand that assets are those resources which are owned by the business through Internal Sources (Capital, Shares, etc) and External Sources (Liabilities) that is called Equity. And Also that there are two types of Assets: 1. Current Assets 2. Non Current Assets You may also be interested in “ Difference Between Liabilities And Owners’ Equity ” , “ Accounts Payable VS Accounts Receivable ” And “Is Accounts Payable is an Asset”? Now, come to the question that whether Accounts Receivable or Debtor is an asset or not. The answer is that Accounts Receivable is a Current Asset because it is the amount due from our customers for the goods sold on credit basis or services rendered by the business to customers on account. This amount received from the customers will provide benefits to the b...