What is the term for money that is owed to a company?

The correct term for money that is owed to a company is "accounts receivable." This term specifically refers to the outstanding invoices or amounts that customers owe to a business for goods or services that have been delivered but not yet paid for. It's an asset for the company because it represents a future economic benefit as the money will eventually be received.

Accounts receivable are recorded on the balance sheet as a current asset, reflecting the amount of funding that the business expects to receive in the near future. This financial aspect is crucial for managing cash flow and assessing the liquidity of the business.

In contrast, accounts payable refers to the money a company owes to its suppliers or creditors. Equity is the ownership interest in the company, representing the residual value of assets after deducting liabilities. Revenue is the income generated from normal business operations and is recognized when goods or services are provided, not when payment is made. Each of these terms has distinct meanings and roles in financial accounting.