Money collected from or owed by customers is called ________blank.Multiple Choiceaccounts payableinventoryaccounts receivablesales order processing

Break Down the Problem

1. Identify what the terms refer to in the context of accounting.
2. Analyze the definitions of each term provided in the options.

Relevant Concepts

• Accounts Payable: Money that a company owes to its suppliers or creditors.
• Inventory: Goods and materials that a business holds for the purpose of resale.
• Accounts Receivable: Money that customers owe to a business for goods or services that have been delivered or used but not yet paid for.
• Sales Order Processing: The series of steps a company takes to fulfill a customer's order.

Analysis and Detail

1. The term "money collected from or owed by customers" directly relates to the receivables of a company.
2. The key phrase here is "owed by customers," which is typically referred to as accounts receivable, as it represents sales made on credit.

Verify and Summarize

Given the definitions, it is clear that the term that fits the description "money collected from or owed by customers" is accounts receivable.

Final Answer

The correct answer is accounts receivable.