Business & Sales

What Is Accounts Receivable?

Accounts receivable (AR) is money that customers owe a business for goods or services already delivered but not yet paid for, typically documented by invoices with payment terms such as Net 30. It is recorded as a current asset on the balance sheet.

Collecting Faster

Clear payment terms, prompt invoicing, and late-payment interest where permitted help reduce the time money is outstanding.

AR vs. AP

Receivables are owed to the business; payables are owed by the business.

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🔗 Related Terms

Accounts Payable Invoice Net 30 Payment Terms Working Capital

More Business & Sales Terms

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Last updated: September 29, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.