Final answer:
The correct term for the amount of cash owed to a company by its customers for goods or services sold on credit is 'accounts receivable,' which is an asset on the company's balance sheet and option 'b' is the answer.
Step-by-step explanation:
The amount of cash owed to a company by its customers from the sale of goods or services is referred to as accounts receivable. This term represents an asset on a business's balance sheet. Accounts receivable are essentially the invoices that a company has issued to its customers for goods or services delivered but not yet paid for.
In contrast, accounts payable are liabilities and represent money that the company owes to its suppliers or creditors. A guarantee is a promise or assurance, typically in writing, that certain conditions will be fulfilled, and it doesn't directly relate to the balance sheet categories. Uncollectible accounts are those receivables that have been deemed uncollectable and are often written off as an expense.
It's important to manage accounts receivable effectively, as an asset-liability time mismatch can occur if customers take too long to pay. This refers to the scenario where a company's liabilities, such as bank withdrawals, are due in the short term, whereas their assets, or the money owed to them by customers, are expected in the long term. The balance between accounts receivable and payable is crucial for maintaining a healthy cash flow and overall financial stability.
So, to answer your question, the correct option is (b) accounts receivable.