Total of bills owed by the practice is called what?

Total of bills owed by the practice is called what?

• A. Aging schedule
• B. Credit
• C. Accounts payable
• D. Posting

Answer: (C)

Accounts payable is the total amount a medical practice owes to vendors for goods and services that have been received but not yet paid. It’s a current liability shown on the balance sheet and represents obligations due in the near term. The aging schedule, while related, is a report that categorizes these outstanding bills by how long they’ve been unpaid and helps manage payments, not the total itself. “Credit” is a general ledger term for entries that increase liabilities or revenue, and “posting” is the act of recording transactions in the ledger. Therefore, the total bills owed corresponds to accounts payable.

Accounts payable is the total amount a medical practice owes to vendors for goods and services that have been received but not yet paid. It’s a current liability shown on the balance sheet and represents obligations due in the near term. The aging schedule, while related, is a report that categorizes these outstanding bills by how long they’ve been unpaid and helps manage payments, not the total itself. “Credit” is a general ledger term for entries that increase liabilities or revenue, and “posting” is the act of recording transactions in the ledger. Therefore, the total bills owed corresponds to accounts payable.