Question

. Accounts receivable is money invested in a business for expansion of the business. a. True b. False

Answer 1

False

Step-by-step explanation:

Accounts receivable is NOT money invested in a business for expansion of the business. That would be known as CAPITAL. Accounts receivable is like money you get paid from a sale. For example, if you sell, let's say a yard of cloth or something, in return you get money from the customer. This is referred to as accounts receivable. On the other hand, if you owe money to a firm or person, you have to pay them money and this is referred to as accounts payable.