What are Receivables in Accounting

Receivables in accounting refer to funds owed to a company for goods sold or services rendered to customers on credit. They are recorded as assets on the balance sheet and categorized based on their expected collection timeframe—typically as either accounts receivable (short-term) or notes receivable (long-term). Managing receivables is crucial for assessing liquidity, predicting cash flows, and maintaining healthy financial operations within a business.

Learn More Download eBook Read Blog