Yes, accounts receivable is the second most typical example of asset. Accounts receivable is considered an asset because it is an important resources with value owned by a business or entity to operate. Accounts Receivable normally falls under the category of current assets since it can be expected that collection of payments from the customers will be within one year.ASSETS
In accounting, assets are any resources with value owned by the business, company, entity or a person. Assets have two categories, these are:Current AssetsNon-current Assets1. Current Assets
-these are kind of assets that can be readily convertible to cash in a normal operating cycle of a business.Some Examples of Current AssetsCash and cash equivalentsAccounts receivableInventoryPrepaid ExpensesMarketable Securities2. Non-current Assets
-these are long-term assets or long-term investments that have a longer useful life that is usually more than 1 year. Not easily convertible to cash.Some Examples of Non-Current AssetsLandProperty, Plant and EquipmentTrademarksLong-term InvestmentsGoodwill
All fixed assets and intangible assets fall under the category of non-current assets.
What is the opposite of assets
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Accounts Receivable (AR) is considered as an asset because it is a resource/s that is owned businesses. ARs are the collectible money from customers' debt to the business.
To further understand why AR is an asset, just continue reading.
In accounting, assets are the resources that a company owns and has monetary value.Two types of asset:Current asset - assets that are usable or convertible to cash within a year or operating cycle of a business.Non-current asset - assets that can't be used or converted to cash within a year or operating cycle of a business.Examples of current asset:Cash and cash equivalentsARSuppliesGoods-on-processInventoriesExamples of non-current asset:LandMachinesIntangible assets
the seller will have a loss because customers will not be interested to buy from the seller when the price is lower in the marker. thus, the seller will have no profit and that is his/her loss.