What is the definition of Account Receivables?

The account receivables is the amount that is owed to the company. Individuals or organizations owe the company a certain amount for goods and services that the company provided on credit.  On a company's balance sheet, accounts receivables are considered as part of the current asset.

Once a sale is generated, the customer is sent an invoice and that is when it is treated as an Account Receivable. The customer is given a certain time in which to fully pay for the account.

Sometimes, to protect the company, credit insurance is taken so that in the event that the debtor becomes insolvent, a portion of the accounts receivables will still be paid.

• Competitive State Fund
• Excess and Surplus Lines
• Commission
• Businessowners Policy / BOP
• Employer’s Liability