What does "accounts receivable" refer to?

"Accounts receivable" refers to the money owed to a company by its clients for services or goods delivered. This involves transactions where a company has provided products or services but has not yet received payment. Essentially, accounts receivable represents a company's claim to receive cash in the future and is an important part of the balance sheet as it reflects money that is expected to flow into the business.

This term is a critical concept in accounting and finance, as it directly impacts a company's cash flow and overall financial health. Understanding accounts receivable is essential for managing and forecasting cash flow, making it a key area of focus for financial management within a business.

The other options involve different concepts: total revenue pertains to the overall income generated from all sales, liabilities from vendors reflect money the company owes rather than is owed to it, and future income based on projected sales indicates expected income that has not yet materialized. These definitions do not align with the concept of accounts receivable, which focuses specifically on money that is owed to the company.