Accounts Receivable

Accounts Receivable are claims that the company has against others for goods, services or money.  Accounts receivable are usually non written promises of the customer to pay for goods or services and are normally on payment terms of between 30 and 60 days.

The concept and the continued use of accounts receivable has been one of the factors that contributes to the ongoing expansion of the American economy.  Nearly every sector of the business community can benefit from providing its customers with the privilege of paying a month or more after the purchase of goods or delivery of a service.

Accounts receivable are found on the balance sheet and is considered a current asset.