When a customer purchases a product or service on credit, that pending payment is recorded in your accounts receivable. We’ll explain what accounts receivable means, how it works, and what goes into ...

Higher accounts receivable can reduce cash flow since it involves waiting for customer payments. Review the statement of cash flows to understand overall cash impact without complex calculations.

They include cash and cash equivalents, accounts receivable, and inventory. The current assets account is a balance sheet line item that's listed under the Assets section which accounts for all ...