Which of the following statements best describes accounts receivable?

Accounts receivable refers specifically to the total amount that customers owe to a business for goods or services that have been delivered but not yet paid for. This financial asset is important for understanding the cash flow situation of a company, as it represents expected future cash inflows from customers. This category of assets is essential for managing a company's finances, as it signals how much money is expected to be collected soon and plays a critical role in financial planning and liquidity.

The other options do not accurately define accounts receivable. The total income earned by a company relates to revenue, not accounts receivable. A company’s total debt encompasses all liabilities, which is a broader category than just accounts receivable and does not represent amounts owed specifically by customers. Finally, cash flow refers to the actual movement of cash in and out of the business, which is different from the amounts recorded as receivables that are expected to be paid in the future.