Is AR a debit liability or credit on trial balance sheet?

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1240186

2026-04-08 06:40

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Accounts Receivable (AR) is considered a current asset on the trial balance sheet, not a liability. It represents money owed to a business by its customers for goods or services provided on credit. As an asset, AR appears on the debit side of the trial balance, indicating an increase in resources for the company. In contrast, liabilities would be recorded on the credit side.

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