Accounts receivable is the money customers (individuals or corporations) owe the firm in exchange for goods or services that have been delivered or used but not yet paid for.As more and more business is being done today with credit instead of cash, this item is a significant component of the balance sheet.
Accounts receivable is however recorded as an asset on the balance sheet as it represents a legal obligation for the customer to remit cash.
Monday, April 6, 2009
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