Certified Paraoptometric (CPO) Practice Exam 2025

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Certified Paraoptometric Exam with our comprehensive quiz featuring multiple-choice questions. Each question is accompanied by hints and explanations, helping you build your knowledge and confidence. Get ready to excel in your career!

Start Multiple Choice Practice Test
Start Flash Cards

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is meant by 'Accounts Receivable'?

  1. Supplies purchased by the business

  2. Outstanding obligations owed to the business by others

  3. Payments made by the business to suppliers

  4. Future income expected from sales

The correct answer is: Outstanding obligations owed to the business by others

'Accounts Receivable' refers to the outstanding obligations owed to the business by others, typically arising from credit sales or services provided on credit. When a business sells goods or services to a customer and allows them to pay later, the amount due is recorded as accounts receivable. This is an essential aspect of accounting because it represents money that the business expects to collect in the future, impacting cash flow and overall financial health. Therefore, recognizing accounts receivable is crucial for managing business resources effectively and understanding the company's financial position.

More Questions Like This