ECONOMICS

Detailed explanation-1: -Resources owned by a company (such as cash, accounts receivable, vehicles) are referred to as the assets of a company.

Detailed explanation-2: -An asset is a resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit. Assets are reported on a company’s balance sheet. They’re classified as current, fixed, financial, and intangible.

Detailed explanation-3: -An account receivable is recorded as a debit in the assets section of a balance sheet. It is typically a short-term asset-short-term because normally it’s going to be realized within a year.”

Detailed explanation-4: -Accounts receivable are the funds that customers owe your company for products or services that have been invoiced. The total value of all accounts receivable is listed on the balance sheet as current assets and include invoices that clients owe for items or work performed for them on credit.

Detailed explanation-5: -Accounts receivable are considered a current asset because they usually convert into cash within one year. When a receivable takes longer than one year to convert, it will be recorded as a long-term asset. In addition to accounts receivable, there are other current assets found on the balance sheet.