__________ accounts show the amount of money owed to the firm by customers.
A. Supply
B. Prepaid
C. Receivables
D. Payables
C
The correct answer is C. Receivables.
To arrive at this answer, one must understand the basic concept of accounting and familiarize themselves with the different types of accounts in a typical financial statement.
In accounting, accounts receivable refers to the amount of money owed to a company by its customers for goods or services that have been delivered but not yet paid for. It represents an asset on the company's balance sheet, as it is an amount that the company expects to collect in the future.
On the other hand, supply accounts (option A) pertain to the company's inventory of goods that are available for sale. Prepaid accounts (option B) typically involve payments made in advance for future goods or services. Payables accounts (option D) relate to the debts or obligations that a company owes to its suppliers or creditors.
By process of elimination, option C. Receivables is the correct answer, as it best describes the accounts that show the amount of money owed to the firm by customers.