what are accounts receivable ar 
accounts receivable ar is the balance of money due to a firm for goods or services delivered or used but not yet paid for by customers accounts receivable is listed on the balance sheet as a current asset any amount of money owed by customers for purchases made on credit is ar joules garcia investopediaunderstanding accounts receivable ar accounts receivable refer to the outstanding invoices that a company has or the money that clients owe the company the phrase refers to accounts that a business has the right to receive because it has delivered a product or service accounts receivable or receivables represent a line of credit extended by a company and normally have terms that require payments due within a relatively short period it typically ranges from a few days to a fiscal or calendar year companies record accounts receivable as assets on their balance sheets because there is a legal obligation for the customer to pay the debt they are considered liquid assets because they can be used as collateral to secure a loan to help meet short term obligations receivables are part of a company s working capital furthermore accounts receivable are current assets meaning that the account balance is due from the debtor in one year or less if a company has receivables this means that it has made a sale on credit but has yet to collect the money from the purchaser essentially the company has accepted a short term iou from its client accounts receivable vs accounts payable