Final answer:
The accounting term that describes the transaction when a company issues an invoice for services provided is Revenue recognition. This is a key concept in accrual accounting which recognizes revenues when they are earned irrespective of the actual cash flow. The correct option is a) Accounts payable.
Step-by-step explanation:
When a company issues an invoice for services performed, this transaction is recognized as Revenue recognition. This is the point in time when the services have been provided and the company has earned the revenue, even though the cash may not have been received yet.
This concept is crucial for accrual accounting, which records revenue when it is earned and expenses when they are incurred, regardless of when the cash is actually exchanged.
Accounts payable relates to the obligations a company has to pay debts to suppliers or creditors within a given time frame. Amortization is the gradual reduction of the book value of intangible assets over their useful lives. Depreciation refers to spreading out the cost of a tangible fixed asset over the course of its useful life.