Final answer:
The statement is false because sales made on credit that have not yet been collected are termed accounts receivable, not accounts payable. Accounts receivable represents money owed to a company, while accounts payable refers to what the company owes to others.
Step-by-step explanation:
True or False: Sales made, but for which payment has not yet been collected, are called accounts payable. This statement is False. Sales that have been made and are awaiting payment are referred to as accounts receivable.
In the context of accounting, accounts receivable represents the money due to a company for goods or services delivered or used but not yet paid for by customers. Essentially, it's the amount that customers owe to the company. Conversely, accounts payable are the obligations of the company to pay debts to its suppliers or creditors.
An easy way to remember this is that receivables are assets to the company; they represent future cash inflows. On the other hand, payables are liabilities, as they represent future cash outflows. So, when a company makes a sale on credit, it records this transaction in its accounts receivable, indicating it expects to receive payment in the future.