### Final Answer

(a) **Accounts Receivable**: **Asset**

**Explanation**: Accounts receivable represents amounts owed to a business by its customers for goods or services delivered but not yet paid for. It is classified as an asset on the balance sheet because it is expected to be converted into cash within a short period, usually within one year. Assets are resources owned by a company that have future economic value. Since accounts receivable provides a future economic benefit (cash inflow) when collected, it is appropriately categorized under assets. Other classifications would include liabilities, which represent obligations owed to outside parties, and stockholders' equity, which reflects the owners’ residual interest in the company after liabilities are settled.

Question

### Final Answer

(a) **Accounts Receivable**: **Asset**

**Explanation**: Accounts receivable represents amounts owed to a business by its customers for goods or services delivered but not yet paid for. It is classified as an asset on the balance sheet because it is expected to be converted into cash within a short period, usually within one year. Assets are resources owned by a company that have future economic value. Since accounts receivable provides a future economic benefit (cash inflow) when collected, it is appropriately categorized under assets. Other classifications would include liabilities, which represent obligations owed to outside parties, and stockholders' equity, which reflects the owners’ residual interest in the company after liabilities are settled.

Knowee AI · Accepted Answer

### Final Answer

(a) **Accounts Receivable**: **Asset**

**Explanation**: Accounts receivable represents amounts owed to a business by its customers for goods or services delivered but not yet paid for. It is classified as an asset on the balance sheet because it is expected to be converted into cash within a short period, usually within one year. Assets are resources owned by a company that have future economic value. Since accounts receivable provides a future economic benefit (cash inflow) when collected, it is appropriately categorized under assets. Other classifications would include liabilities, which represent obligations owed to outside parties, and stockholders' equity, which reflects the owners’ residual interest in the company after liabilities are settled.

Indicate whether each of the following items is an asset, liability, or part of stockholders’ equity.(a)Accounts receivableSelect an item

Question

Indicate whether each of the following items is an asset, liability, or part of stockholders’ equity.

Solution

Final Answer

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