Florida General Contractor Practice Exam

What describes billing that has been mailed by a contractor, but the payment has not yet been received?

1. Outstanding invoices

2. Accounts payable

3. Late payments

4. Receivables

The correct answer is: Outstanding invoices

The term that describes billing that has been mailed by a contractor, but the payment has not yet been received is outstanding invoices. This term specifically refers to invoices that are due but have not been paid by the client or customer. Essentially, these are amounts that the contractor expects to collect but hasn't yet received payment for. In a business context, outstanding invoices indicate that there is an expectation of incoming revenue that has not yet materialized, thus reflecting a key aspect of cash flow management for contractors. The management of outstanding invoices is crucial since it impacts the contractor's ability to maintain operational liquidity and fulfill financial obligations. Accounts payable, on the other hand, usually pertains to the amounts a business owes to its suppliers or vendors for goods or services received but not yet paid for. Late payments refer specifically to overdue payments that exceed their due date, while receivables generally encompass all amounts owed to a business, including those not yet overdue. However, outstanding invoices directly and most accurately capture the scenario described in the question.