From "The Development of the C Language":

Thompson’s PDP-7 assembler outdid even DEC’s in simplicity; it evaluated expressions and emitted the corresponding bits. There were no libraries, no loader or link editor: the entire source of a program was presented to the assembler, and the output file.with a fixed name.that emerged was directly executable. (This name, a.out, explains a bit of Unix etymology; it is the output of the assembler. Even after the system gained a linker and a means of specifying another name explicitly, it was retained as the default executable result of a compilation.)