Is accounts receivable a expense Is it financing activity?

1 answer

Answer

1013735

2026-04-19 16:50

+ Follow

Accounts receivable is not an expense; it represents money owed to a company by its customers for goods or services delivered. Instead, it is classified as a current asset on the balance sheet. Additionally, accounts receivable is not considered a financing activity; it relates to the company's operational activities involving sales and revenue generation. Financing activities typically involve transactions related to borrowing and equity financing.

ReportLike(0ShareFavorite

Copyright © 2026 eLLeNow.com All Rights Reserved.