What is the obligation a medical office owes to its creditors called?

The term that refers to the obligation a medical office owes to its creditors is "accounts payable." This term encompasses all the debts and obligations that the office needs to settle, including any money owed to suppliers, vendors, and other creditors for goods and services received. Accounts payable represents a fundamental aspect of a business's financial management and cash flow, ensuring that the office remains in good standing with its financial obligations.

In contrast, accounts receivable refers to money owed to the medical office by patients or insurance companies for services rendered. Liability is a broader term that includes all types of debts and obligations, not specifically those owed to creditors. Net worth represents the difference between a company's assets and liabilities, showcasing its overall financial health but does not specifically address the obligations to creditors. Thus, accounts payable specifically addresses the direct relationship of the medical office with its creditors.