Definition: is money that the clients owe to a company or a firm for its merchandise or services. In other words, accounts receivable imply the money that a business has the right to receive from its clients for delivering a service or a product. Therefore, each account receivable is a sum of money that a client promises to pay later. Despite the fact that they are not yet paid and converted into cash, accounts receivable are typically recorded as assets in the balance sheets of the companies, thus creating a legal obligation for the customers to pay what they owe to a company.
In a Sentence:
In case if we are unable to collect our accounts receivable from this client, we might have to take the matter to court.
The accounts receivable that we currently have will play a huge role when we apply for the bank loan.
This is one of the accounts receivable that we can finally convert into cash.
Synonyms and related words: accounts payable, accounts receivable turnover, assignment of accounts receivable, average accounts receivable