Which of the following best describes receivables?

Receivables are best described as amounts owed to a company by its customers for goods or services that have been provided but not yet paid for. This generally falls under the category of accounts receivable, which refers specifically to the claim or right that a business has to receive payment from its customers. When a company sells products or performs services on credit, it records this transaction as an accounts receivable.

In this context, the correct answer accurately captures the essence of receivables by highlighting the relationship between a company and its customers. It reflects the expectation that these amounts will ultimately convert into cash when the customers fulfill their payment obligations.

The other options do not accurately define receivables; liabilities relate to what the company owes, inventories pertain to goods available for sale, and investments in other companies involve ownership stakes and are not classified as receivables.