Accounts receivables can be the result of reimbursement owed or what else?

Accounts receivables can be the result of reimbursement owed or what else?

• A. Reimbursement owed
• B. Overpayment to a vendor that is due back to the government
• C. Credit memo from vendor
• D. Interagency transfer

Answer: (B)

Accounts receivable is an asset that represents money owed to the government by others. It arises when the government is entitled to be reimbursed for costs it has paid on behalf of others, and it can also occur when the government has paid a vendor more than the amount due. In that overpayment scenario, the vendor must refund the excess, creating an accounts receivable from the vendor until the refund is received. A credit memo from a vendor typically reduces the amount owed, not create a new receivable. An interagency transfer is simply moving funds between government entities and does not constitute money owed by a third party. So the situation that fits accounts receivable besides reimbursement owed is an overpayment to a vendor that is due back to the government.

Accounts receivable is an asset that represents money owed to the government by others. It arises when the government is entitled to be reimbursed for costs it has paid on behalf of others, and it can also occur when the government has paid a vendor more than the amount due. In that overpayment scenario, the vendor must refund the excess, creating an accounts receivable from the vendor until the refund is received. A credit memo from a vendor typically reduces the amount owed, not create a new receivable. An interagency transfer is simply moving funds between government entities and does not constitute money owed by a third party. So the situation that fits accounts receivable besides reimbursement owed is an overpayment to a vendor that is due back to the government.