CMAA Practice Exam 2025 – Complete Guide for Exam Prep

The amounts owed to creditors at a given point in time are classified as accounts payable. This term encompasses all outstanding debts and obligations that a company has incurred in the course of its normal business practices. Accounts payable represents a liability on the company's balance sheet, indicating that the business has received goods or services and is required to pay for them in the future.

Revenues refer to the income generated from normal business operations, which does not accurately represent the debts owed. Net income pertains to the profitability of the business after expenses, thereby not aligning with the concept of liabilities owed to creditors. Current assets consist of the assets that are expected to be converted into cash or used up within a year, which does not include the obligations to creditors. Therefore, accounts payable is the correct choice as it directly reflects the total amounts owed to creditors at a specific time.