Definition
Also referred to as "receivables," this is the accounting term used to describe claims the company has against others for goods, services, or money. Accounts receivable are usually non-written promises to pay for goods or services received but not yet paid for by a customer.
Explanation
Accounts receivable appear on the balance sheet as a current asset; and are usually recorded when an invoice has been rendered to the customer. The typical repayment term for customers is 30 to 60 days after the mailing of an invoice.