Money Owned to a Company by Its Customers Is Referred

question 57

Multiple Choice

Money owned to a company by its customers is referred to as:

• A) accounts obtainable
• B) accounts payable
• C) accounts receivable
• D) inventory
• E) accounts collectable

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Definitions:

Reasonable Person Standard

A legal standard used to determine how an average person with ordinary prudence would act in certain circumstances.

Plaintiff

The party that initiates a lawsuit by filing a complaint against the defendant for legal redress.

Negligence

A failure to exercise the level of care that someone of ordinary prudence would have exercised in similar circumstances, leading to harm or damage.

Action

In legal terms, an action refers to a formal process by which one party sues another, seeking judicial intervention to resolve a dispute.