Accounts Receivable Asset or Liability
Service revenue appears on a balance sheet as an accounts receivable for services rendered which are also known as accounts payable This amount is typically listed separately from other accounts receivable because its not considered cash. Accounts receivable sometimes shortened to receivables or AR is money owed to a company by its customers. Portfolio Income Statement Balance Sheet Accounts Receivable The company owes the customer the work. . In cash registers. As the contractor has to do enough work to justify the billing accountants treat this as a liability. As you can see the main difference between the contract asset and a trade receivable is conditionality. Impairment losses on receivables or contract assets that originate from contracts with customers should be presented separately from other impairment losses. This goes on the books as an asset like accounts receivable. Conversely it creates a liability account Li
