what is meant by accounts receivable
Accounts Receivable. 1. Money that a customer owes a company for a good or service purchased on credit. Accounts receivable are current assets for a company and are expected to be paid within a short amount of time, often 10, 30, or 90 days. See also: Collection period. 2. A unit within a company's accounting department that deals with accounts receivable. Money owed to a business by customers who have bought goods or services on credit. Accounts receivables are current assets that continually turn into cash as customers pay their bills.