Account receivable is a current asset that is stated in the balance sheet. It shows predicted cash inflow that the company will get from its clients for sales that have been made under credit terms. Because this money should be collected within a short period of time – typically from 30 to 90 days – it is a current asset. Proper management of account receivable plays a major role in shaping a company’s working capital and its ability to settle financial obligations. Intimate monitoring of receivables ensures that organizations collect money in a timely manner, control the exposure to bad debts and have their necessary operating capital. Read more about Accounts Receivable Asset Or Liability