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.

 

[Rick_Grimes]

Yes, Accounts Receivable is considered a current asset because it represents money owed to a business by its customers for goods or services already delivered, which is expected to be collected in the short term.

 

[BlissCore]

Yes, Accounts Receivable (AR) is a source of asset. It is the money that your customers owe you goods or services that you have provided and your customer has not paid yet.

As an illustration, when a company sells goods on credit, the sum of money that the customers are owed is called Accounts Receivable. It appears in the current assets section of the balance sheet since it is likely to be converted to cash in the near future.

The AR in a nutshell gives the projection of cash flow in the future and assists in determining the liquidity and financial status of a business.

 

[Mayank]

Yes, accounts receivable is an asset. It represents money owed to a business by customers for goods or services delivered on credit. It is recorded on the balance sheet as a current asset, expected to be converted into cash.