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

---

Definitions:

Long-Term Investments

Assets that a company intends to hold for more than one year, including stocks, bonds, and real estate.

Bonds Retired

The process of redeeming bonds before their maturity date, effectively removing them from circulation.

Old Equipment

Refers to machinery or tools that have been used over an extended period and may now be considered outdated or less efficient.

Indirect Method

A financial accounting technique used to prepare the cash flow statement, where changes in balance sheet items are adjusted to convert accrual-based net income into cash flow.