Final answer:
The term for money owed by a client to a business for goods or services sold is accounts receivable, an asset on the company's balance sheet. It is distinct from terms like gross revenue, profits, net income, petty cash, and cash flow. An overdraft is a situation where more money is withdrawn from a bank account than is available, up to an agreed limit.
Step-by-step explanation:
The term used for money owed to the practice by the client for the sale of goods and services is accounts receivable. This is a current asset on the balance sheet that represents legal claims for payments from customers for goods delivered or services provided. When a service is rendered or goods sold on credit, the amount billed to the customer is recorded as accounts receivable until it's paid.
For example, if a consulting firm provides services to a client and invoices them, the amount due from the client will be recorded as accounts receivable on the firm's balance sheet. This asset is closely monitored in business as part of managing cash flow. It is different from gross revenue, which is the total income from sales before any expenses are subtracted, profits, which is the income remaining after all expenses and taxes, net income, which is the profit after all expenses including taxes, petty cash, a small amount of cash on hand for minor expenses, and cash flow, the total amount of money being transferred into and out of a business.
An overdraft occurs when a person or a business spends more money than is in their bank account and is allowed by the bank to temporarily owe money up to an agreed limit.