What is Accounts Receivable?
A definition of Accounts Receivable
“Accounts receivable is the money owed to a company by its customers in exchange for goods or services delivered but not yet paid for. It’s recorded as an asset on the balance sheet.”

Business Glossary > What is Accounts Receivable?
Examples of Accounts Receivable in a Sentence:
The company needs to manage its accounts receivable to ensure steady cash flow.
Our accounts receivable have increased due to higher sales this quarter.
Efficient accounts receivable management is crucial for business liquidity.
Why is Accounts Receivable Important in Business?
Understanding accounts receivable is vital for managing cash flow and ensuring financial stability. Businesses rely on timely payments from accounts receivable to pay expenses and invest in growth.
Know Your Niche Inside Out by Tomorrow: Learn everything you need to know about a niche from a report rushed to you in 24 hours, (or spend the next 3 weeks researching).
Associated Terms
Here are some associated business terms and synonyms for “Accounts Receivable”:
- Receivables
- Trade Receivables
- Debtors
Apple Inc. Accounts Receivable
In 2022, Apple reported substantial accounts receivable as a result of strong sales across its product lines. Effective management of accounts receivable has been key to maintaining Apple’s liquidity and funding its innovation-driven initiatives.
Final Notes on Accounts Receivable
Effective accounts receivable management involves regular monitoring, prompt invoicing, and efficient collections processes. This ensures that businesses maintain a healthy cash flow and meet their financial obligations.
This has been a definition of Accounts Receivable meaning.
Explore more from our Business Term Glossary for Entrepreneurs