Money owed to a company by its customers is referred to as ________.
A) accounts obtainable
B) accounts payable
C) accounts receivable
D) inventory
E) accounts collectable

Question

Quizplus · Accepted Answer

Accounts receivable is the money that a company is owed by its customers for goods or services that it has already provided. This is an asset on the company's balance sheet, representing its expectation that it will receive payment for these outstanding balances. The other answer choices (A, B, D, and E) do not correctly describe this concept.

Money Owed to a Company by Its Customers Is Referred