Identify the statement below that is correct.

Multiple Choice

Accounts receivable are held by a seller and are promises of payment from customers to sellers.

Prepaid revenue accounts are used to record when customers pay in advance for products or services.

A liability account is commonly used to record increases and decreases in both the land and buildings owned by a business.

When a future expense is paid in advance, the payment is normally recorded in a liability account called Prepaid Expense.

Accrued liabilities include accounts receivable.