What is accounts receivable?

Accounts receivable (AR) represent the amount of money that customers owe your company for products or services that have been delivered. AR are listed on the balance sheet as current assets and also refer to invoices that clients owe for items or work performed for them on credit.

What is 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.

What is the difference between accounts receivable and accounts payable?

Accounts receivable are an asset account, representing money that your customers owe you. Accounts payable on the other hand are a liability account, representing money that you owe another business. Let’s say you send your friend Keith’s business, Keith’s Furniture Inc., an invoice for $500 in exchange for a logo you designed for them.