Which account reflects a claim against another entity?

The account that reflects a claim against another entity is accounts receivable. This account represents money owed to a business by its customers for goods or services that have already been delivered or rendered but have not yet been paid for. Essentially, it is a financial asset reflecting the company's right to receive cash in the future, indicating a claim against the customers.

In accounting, this distinction is important because it affects how a company manages its cash flow and assesses its financial health. When customers purchase on credit, the business records this transaction in the accounts receivable account, thus acknowledging the amount that they expect to collect.

Other options do not convey a claim against another entity. Inventory is classified as a current asset representing goods that are available for sale. A computer is a fixed asset reflecting the tangible property owned by the business for operational use. A term deposit, while it does represent a financial investment made with a bank or financial institution, does not signify a claim against another entity in the same manner that accounts receivable does. It reflects a financial asset but not in the context of a claim for goods or services provided.