Which financial statement item reflects amounts due from customers?

The item that reflects amounts due from customers on a financial statement is accounts receivable. Accounts receivable represents money owed to a business by its customers for goods or services that have been delivered but not yet paid for. This balance is recorded as an asset on the balance sheet because it represents a future economic benefit, as the company expects to collect this amount.

Understanding the nature of accounts receivable helps in assessing a company's liquidity and operational efficiency. A higher accounts receivable may indicate strong sales but can also signal potential collection issues if it remains high for extended periods. Thus, accounts receivable is a crucial component in evaluating a firm’s financial health and its ability to manage credit.

The other items mentioned do not serve this purpose. Inventory represents goods available for sale, marketable securities are investments that a company can quickly convert into cash, and prepaid expenses are future expenses that have already been paid. None of these accurately reflect money owed to the company by customers, making accounts receivable the correct and relevant choice in this context.