Question

___ refers to money owed a company by its clients or customers who have promised to pay for the products at a later date.

a) Accounts receivable
b) Accounts payable
c) Liabilities
d) Equity

Answer 1

The term for money owed to a company by its clients who will pay at a later date is accounts receivable.

Step-by-step explanation:

The money owed to a company by its clients or customers who have promised to pay for the products at a later date is referred to as accounts receivable. Accounts receivable represent an asset on a company's balance sheet because it is expected to be converted to cash as customers repay their short-term debts to the company. This concept contrasts with accounts payable, which are the company's own obligations or liabilities to pay others. The balance sheet captures these financial positions and is an essential financial statement that lists a company's assets and liabilities.