Accounts receivable represents the amount owed to a business by its customers, generally due to credit sales by the business.
The balance of money owed to a business for products or services provided or utilized yet to be payed for by clients is known as accounts receivable (AR). On the balance sheet, accounts receivable are displayed as a liquid assets. Any amount of money that clients owe for transactions they made using credit is known as AR. Receivables, also known as accounts receivable, are a company's line of credit that typically include conditions that call on payments to be received within a somewhat short time frame. A few weeks to a financial or calendar year are usually included.
Due to the customer's legal duty to pay the debt, businesses include accounts receivable as an asset on their balance sheets.
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