Customer
A customer is a party that contracts to obtain goods or services that are outputs of the entity’s ordinary activities in exchange for consideration. The customer may pay immediately or receive credit. In bookkeeping, individual customer accounts record amounts invoiced, receipts and adjustments, while their totals support receivables balances and collection work.
Worked example
A retailer buying goods from a wholesaler for resale is the wholesaler’s customer, even though it is itself a business.
Common mistake
A customer is not necessarily a receivable: cash customers owe nothing after payment, and customer deposits may create liabilities before delivery.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | BT | Supporting | September 2026–June 2027 |
| ACCA | F1 | Supporting | July 2027–August 2028 |
| ACCA | F2 | Supporting | July 2027–August 2028 |
| ACCA | FA | Supporting | September 2026–June 2027 |
| ACCA | K1 | Supporting | July 2027–August 2028 |
| FIA | FBT | Supporting | September 2026–June 2027 |
| FIA | FFA | Supporting | September 2026–June 2027 |