Which of the following statements is not true: Multiple Choice Accounts receivable are increased by billings to customers. Accounts receivable are held by a seller. Accounts receivable arise from credit sales. Accounts receivable are classified as assets. Accounts receivable are increased by customer payments.

Question

Business

Mariah Burch

27 February, 01:24

Which of the following statements is not true: Multiple Choice Accounts receivable are increased by billings to customers. Accounts receivable are held by a seller. Accounts receivable arise from credit sales. Accounts receivable are classified as assets. Accounts receivable are increased by customer payments.

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Answers (1)

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Diya Carlson · Answer 1

Accounts receivable are increased by customer payments.

Explanation:

This alternative is the incorrect one.

Accounts receivable can be defined as the account where the increases and decreases that are related to the sales of a company's products and services are recorded.

Therefore, the highlighted alternative is false, since when payments are received from customers, accounts receivable decrease, and do not increase.