Answer:
A. current assets
Explanation:
In Financial accounting, Accounts Receivable are considered to be a current asset because it is the payment a business firm would receive from its customers for goods purchased or services taken on credit. Also, accounts receivable are recorded in the current assets section of the balance sheet because they add value to a business firm.
Generally, current assets are considered to be liquid because they are listed on the balance sheet in the order (descending) in which they are expected to turn or be converted to cash within a relatively short term period.
Hence, receivables are current assets on the balance sheet, which are listed in order of liquidity.
All receivables that are expected to be realized in cash within a year are reported in the current assets section of the balance sheet.
