Accounts Receivable is classified on the
Blank
______.

Question

Accounts Receivable is classified on the 
Blank
______.

BlackTom AI · Accepted Answer

The question asks: Accounts Receivable is classified on the Blank. 
Option 1: 'balance sheet as a noncurrent liability' — This is incorrect because accounts receivable represents money owed to the company by customers and is not a liability; it is something the company expects to collect, so it cannot be a liability, especially not noncurrent. 
Option 2: 'balance sheet as a noncurrent asset' — This is close to plausible at first glance, but accounts receivable is typically expected to be collected within a short period (often 30-60 days), so it is considered a current asset rather than a long-term (noncurrent) asset. 
Option 3: 'balance sheet as a current liability' — This misclassifies accounts receivable as a liability; accounts receivable is not an obligation owed by the company, but rather an asset representing future cash inflows. So this is clearly wrong. 
Option 4: 'income statement as a noncurrent asset' — The income statement records revenues and expenses over a period; it does not carry balance sheet classifications like asset categories. This option confuses financial statement components and is incorrect. 
Option 5: 'balance sheet as a current asset' — This is the correct classification. Accounts receivable is an asset expected to be converted to cash within the normal operating cycle (or within a year), hence a current asset on the balance sheet. 
Option 6: 'income statement as a noncurrent liability' — Again, the income statement is not where balance sheet items are reported, and a noncurrent liability is a balance sheet category, not an income statement item; this option is both misfiled and conceptually wrong. 
Option 7: 'income statement as a current asset' — Incorrect for two reasons: assets are not shown on the income statement, and even if it were about asset classification, the term is mismatched. 
Option 8: 'income statement as a current liability' — Also incorrect for the same reason: the income statement does not classify balance sheet accounts, and a current liability is not reported there. 
In summary, the only option that correctly places Accounts Receivable is: 'balance sheet as a current asset', reflecting its nature as an amount expected to be collected within the operating cycle, categorized under current assets on the balance sheet.

Accounts Receivable is classified on the Blank ______.

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