Financials

Accounts receivable

Amounts a company has billed or earned but has not yet collected in cash.

What it means

Receivables are current assets for many companies. They can rise when sales are recognized before cash collection, which is why they connect income statement revenue to operating cash flow.

Example

If a customer is invoiced in March and pays in April, the March balance sheet may include a receivable.

What not to infer

A receivable balance does not prove collection quality without aging, allowances, and company-specific credit context.