What is accounts receivable?

Question

Accepted Answer

Accounts receivable refers to the money owed to a company by its customers for goods or services provided on credit.

It is a current asset on the balance sheet.
Accounts receivable represents the credit sales made by a company.
It is recorded when a company invoices its customers for the goods or services provided.
The amount owed by customers is typically collected within a specified period, known as the credit terms.
If a customer fails to pay within the credit terms, the account may become delinquent and require further action, such as collections or legal proceedings.
Accounts receivable is an important metric for assessing a company's liquidity and financial health.

Accepted Answer

We buy goods and materials from vendor and prepare over own manufacturing product of our company.And sell to the customers,that is called a account receivable

What is accounts receivable?

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