What does accounts receivable mean on the CPA exam?
Accounts receivable. Amounts customers owe for goods or services already delivered. An asset, reported net of the allowance for amounts not expected to be collected.
Defined against ASC 310-10.
Which CPA exam sections use accounts receivable?
Accounts receivable appears in 6 CPA exam sections: AUD, BAR, FAR, ISC, REG, TCP.
Related terms
- transaction price: The consideration an entity expects to be entitled to for transferring goods or services, excluding amounts collected for third parties such as sales tax.
- allowance for credit losses: The amount set aside for receivables not expected to be collected, estimated over the whole expected life of the asset rather than only once a loss is probable.
- temporary difference: A difference between the tax basis of an asset or liability and its reported amount that will produce taxable or deductible amounts in future years.
- contract asset: The right to consideration for goods or services already transferred, where the right still depends on something other than the passage of time.
- contract liability: The obligation to transfer goods or services for which the customer has already paid, or for which payment is unconditionally due.
- additional paid-in capital: Amounts received from shareholders above the par or stated value of the shares issued, reported as a separate equity caption.