_____ refers to money that is owed to a business by its customers who purchased a product on credit.
A) Pledging receivable
B) Accounts receivable
C) Factoring receivable
D) Accounts payable

Question

Quizplus · Accepted Answer

Accounts receivable refers to money that is owed to a business by its customers who purchased a product on credit. Pledging receivable refers to using accounts receivable as collateral for a loan, while factoring receivable refers to selling accounts receivable to a factor (third-party company) for immediate cash. Accounts payable refers to money owed by a business to its suppliers for goods or services received.

_____ Refers to Money That Is Owed to a Business