Accounts receivable

Definition

Accounts receivable is the total amount of money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for. It is considered a current asset on a company's balance sheet.

Related terms

Cash Flow:

The net amount of cash and cash equivalents being transferred into and out of a business.

Balance Sheet:

A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time.

Credit Terms: The agreement between a buyer and seller which outlines the terms for payment of goods or services delivered, including the due date and any discounts for early payment