If a customer doesn't pay at the time of sale, it means that ...

A. It does not have to be recorded

B. It is never an accounts receivable

C. An accounts receivable is always created

D. A and B

Question

Advanced Placement (AP)

Isaac Mckee

1 August, 20:37

If a customer doesn't pay at the time of sale, it means that ...

A. It does not have to be recorded

B. It is never an accounts receivable

C. An accounts receivable is always created

D. A and B

+3

Answers (1)

Know the Answer?

Haylie Rowe · Answer 1

Answer: C. An accounts receivable is always created.

The basic idea behind Accounts Receivable is based on its name. Accounts Receivable is the money you have earned, but which has not yet been received (it's not "cash in hand" yet). It means you have already provided a service or delivered a product to the customer (cash outflow), but have not yet received your payment (cash inflow). If a customer doesn't pay at the time of sale, it means that an accounts receivable should be created.

If a customer doesn't pay at the time of sale, it means that ...A. It does not have to be recordedB. It is never an accounts receivableC. An accounts receivable is always createdD. A and B

If a customer doesn't pay at the time of sale, it means that ...

A. It does not have to be recorded

B. It is never an accounts receivable

C. An accounts receivable is always created

D. A and B