What is accounts receivable?

Accounts receivable refers to the amount of money that a business or organization is owed by its customers or clients for goods or services that have been provided but not yet paid for. These unpaid debts are recorded as assets on a company's balance sheet and represent funds that are expected to be received in the near future. Managing accounts receivable is a crucial part of maintaining a healthy cash flow for a business, as overdue payments can cause financial strain and impact the ability to pay bills and meet other financial obligations.

This mind map was published on 24 April 2023 and has been viewed 97 times.