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Simple meaning of Accounts Receivables-
Whenever there is an exchange of goods and services of a company and their clients, it all happens in the form of money transactions. The money owned by an individual customer or any corporations to any other unit for the exchange of goods that has been delivered and used but the payment is not done yet, and the company has to collect that amount of fund from the purchaser is known to be as accounts receivable.
Many companies has a policy to sale some portion of their service or goods on basis of credit and this is also shown in their balance sheet as assets as it represents itself as a legal liability for customer to dispatch cash for its debts based on short term base. Accounts receivable are never limited in the senses of business only even an individual has it. It can be understood from a minor employee- employer point of view; where later is bound to give payments to former as in monthly or weekly check payments, for the services they availed from their employees.
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