Is Accounts Receivable an Asset?

[amara]

I’ve been reviewing financial statements and came across Accounts Receivable. I’m a bit confused—does it count as an asset on the balance sheet? Can someone explain why Accounts Receivable is considered an asset, and maybe give examples of how it’s used in business accounting?

 

[danisjohn]

Yes, accounts receivable is an asset. It is money that belongs to a company as a result of goods or services that it has provided to its customers even without being paid. Being in the current asset category, accounts receivable should be converted into cash in one year and it helps the company to be liquid.

 

[Jarwish]

Yes, Accounts Receivable is a current asset representing money owed to a business by customers for goods or services delivered but not yet paid.

 

[Shane Warne]

Yes, the Accounts Receivable is a current asset on the balance sheet. It is the amount of money that a business owes to their customers in terms of goods or services provided on a credit basis and is set to be paid within a year.

 

[brook]

Yes, accounts receivable is an asset. It is money that is vested to a company due to goods or services that it has rendered to its customers without receiving a payment. As a current asset, the accounts receivable is supposed to be consumed into cash within a year and it also aids the company to be liquid.