Final answer:
The term used to describe the result of a sale of goods or services on credit is 'accounts receivable,' which signifies the obligation of a customer to pay for purchases at a future date. Accounts receivable are essential for businesses to manage cash flow and were historically key to the expansion of consumerism.
Step-by-step explanation:
When goods or services are sold on credit, the result is referred to as an accounts receivable. This term represents the money owed to a company by its customers who have purchased goods or services on credit. Essentially, it is a legally enforceable claim for payment held by a business against its customer/clients for goods supplied and/or services rendered in execution of the customer's order. Credit transactions are common in business and require careful management to minimize the risk of bad debt, where customers default on their payments.
For example, when a business sells a product to a customer on credit, it records the transaction as an accounts receivable, since the customer has agreed to pay at a future date. This practice is crucial for maintaining cash flow and is an integral part of consumer credit that played a significant role in the growth of a middle class and the expansion of American consumerism in the 19th century. As highlighted, buying on credit allowed individuals to purchase luxury items previously only attainable by the wealthy, and this behavior has evolved into the contemporary credit card systems where credit cards act as short-term loans.