Accounts receivable is classified as a non-current asset.Group of answer choicesTrueFalse

Analysis

Accounts receivable represents the amounts owed to a company by its customers for goods or services delivered but not yet paid for. This can vary depending on the time frame within which the amounts are expected to be collected.

1. Definition of Current and Non-Current Assets:

   • Current Assets: These are assets that are expected to be converted to cash or consumed within one year or one operating cycle, whichever is longer. Examples include cash, inventory, and accounts receivable.
   • Non-Current Assets: These are assets not expected to be converted into cash within one year. Examples include property, plant, equipment, and long-term investments.

2. Classification of Accounts Receivable:

   • Typically, accounts receivable are classified as current assets because they are usually expected to be collected within a year.

Conclusion

Based on the definitions and typical classifications in accounting, the statement "Accounts receivable is classified as a non-current asset" is False.

Final Answer

False