Final answer:
Money owed to a practice by the client for the sale of goods and services is known as Accounts receivable, which is an asset on the balance sheet.
Step-by-step explanation:
The term that describes money owed to the practice by the client for the sale of goods and services is Accounts receivable. Accounts receivable is an asset on a company's balance sheet. It represents the money that customers owe to the company for products or services they have received but not yet paid for. In contrast, liabilities such as accounts payable represent what the company owes to its suppliers or creditors, and revenue denotes the income generated from the sale of goods or services. When a business provides a service or sells a product on credit, the amount billed to the client enters the books under accounts receivable until the client pays the invoice.
On a balance sheet, assets, including accounts receivable, appear on one side, typically the left side if presented in a T-account format. On a bank's balance sheet, for example, other assets might include cash, loans made to clients, and investments such as government securities. Liabilities, which are listed on the opposite side, consist of obligations like customer deposits and loans from other institutions. The difference between total assets and total liabilities gives us the bank capital or net worth of the bank.