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Commerce · Q125

Accounting

Graduate and Post Graduate · Commerce · question 125

Q125

Postdated cheques are considered as

A.
Cash
B.
Bank balance
C.
Accounts receivable
Answer
D.
Cash reserve

Answer: Option C

Solution

Answer: Option C
Solution:
Postdated cheques are considered as Accounts receivable. If the postdated check was received as payment on accounts receivable, the accounts receivable balance is not reduced until the date of the check.