Dr. Shalhoub runs a chiropractic clinic. He typically bills his customers for services he performs and gives them about 30 days to make the payments. What are these amounts of money that his customers owe called?

Question

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The amounts of money that Dr. Shalhoub's customers owe him are called accounts receivable. This is because they represent the amount of money that he has a right to collect from his customers for services already performed, but for which payment has not yet been received. Prepaid expenses represent payments already made for goods or services not yet received, unearned revenues represent payments received for goods or services not yet provided, and intangible assets represent assets such as patents or trademarks.

Dr Shalhoub Runs a Chiropractic Clinic