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The amount owed by customers is considered an asset, specifically classified as accounts receivable on the balance sheet. This represents money that a company expects to receive in the future for goods or services provided. In contrast, liabilities are obligations the company owes to others. Therefore, amounts owed by customers indicate potential future cash inflow, categorizing them as an asset.
What else can I help you with?
Is money owed by a customer an asset or a liability?
yes- (it is an asset)
A business paid 9000 to a creditor in payment of an amount owed The effect of the transaction on the accounting equation was to?
increase an asset, increase a liability
A business paid 7000 to a creditor in payment of an amount owed. The effect of the transaction on the accounting equation was to?
decrease in asset and decrease in liability
Are Accounts Receivables a liability or asset?
Accounts Receivable are considered an asset. They represent money owed to a company by its customers for goods or services delivered but not yet paid for. As an asset, they reflect future cash inflows and contribute to the overall value of a company's balance sheet.
Does a credit to a liability account increase or decrease amount owed?
It increases the amount owed, because creditors would be credited
Is money owed by a customer an asset or a liability?
yes- (it is an asset)
A business paid 9000 to a creditor in payment of an amount owed The effect of the transaction on the accounting equation was to?
increase an asset, increase a liability
A business paid 7000 to a creditor in payment of an amount owed. The effect of the transaction on the accounting equation was to?
decrease in asset and decrease in liability
An amount owed by a business?
Liability
Are Accounts Receivables a liability or asset?
Accounts Receivable are considered an asset. They represent money owed to a company by its customers for goods or services delivered but not yet paid for. As an asset, they reflect future cash inflows and contribute to the overall value of a company's balance sheet.
What is the amount owed to creditors called?
liability
What is the total amount of money owed by customers to our business?
The total amount of money owed by customers to our business is the sum of all outstanding balances that customers have yet to pay.
Does a credit to a liability account increase or decrease amount owed?
It increases the amount owed, because creditors would be credited
Amount owed to a business that are on a credit basis are considered a current asset on the books and?
Amounts owed to a business that are on a credit basis are considered a current asset on the books and
What is the amount owed to a business that are on a credit basis are considered a current asset on the book?
Amounts owed to a business that are on a credit basis are considered a current asset on the books and
A credit to a liability account?
indicates an increase in the amount owed to creditors.
Amounts owed to a vendor is it a liability asset revenue epense or divedend?
Anything "owed" is a liability to the company until it is paid.Gathering what I can from the question, I am assuming the "vendor" would be a person/company that supplies a product that another company resales for profit. In other words it is their Inventory, When the merchandise is recieved, at the moment of receipt if the amount isn't paid and is put on account (owed) then journal entry is adebit to Inventorycredit to Account Payable.Since this is a debt it is recorded as a liability, once it is paid however, the transaction goes as followsdebit to Account Payablecredit to CashThe inventory itself remains an asset until it is sold, then the asset decreases and then and only then is the cost initially paid recorded as an expense.
