American Massage Therapy Association (AMTA) Practice Test

What is recorded in the accounts receivable category for a massage therapy clinic?

1. A clinic made a total of $5000 in one week.

2. The clinic owes a wholesale supplier $2000 for a linen order.

3. A client still owes the clinic $120 for treatment.

4. After calculating taxes, a clinic made $3000 in one week.

The correct answer is: A client still owes the clinic $120 for treatment.

The accounts receivable category represents amounts that are owed to the clinic for services rendered but not yet paid for. In this context, when a client still owes the clinic $120 for treatment, it signifies an outstanding balance that the clinic expects to receive in the future. This outstanding payment is recorded as an asset in the accounts receivable because it reflects future cash inflows that the clinic anticipates will come from clients for services that have already been provided. Other options reflect different financial transactions: total earnings for a week relate to revenue but not specifically to accounts receivable, debts to suppliers are liabilities, and calculations of income after taxes pertain to overall earnings rather than specific client debts. Thus, the correct choice directly connects to the concept of owed payments from clients, fitting precisely into the accounts receivable category.