Monies owed to a business but not yet paid are called

• A. Accounts payable
• B. Accounts receivable
• C. Revenue
• D. Liabilities

Answer: (A)

Monies owed to a business but not yet paid are called accounts receivable. This represents amounts customers owe you after making purchases on credit and is recorded as a current asset on the balance sheet. It grows when you make sales on credit and shrinks as customers pay. This is different from accounts payable, which are amounts your business owes to suppliers and are liabilities. Revenue is the income recognized from sales, but it isn’t the same as the unpaid balance you’re waiting to collect; revenue affects equity when earned, while accounts receivable is the asset that will convert to cash.