Accounts Receivable Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Accounts Receivable, written in plain English, along with examples of how it is used.

What is Accounts Receivable?

n. accounting transactions related to cutomers’ bills, of the money they owe to a person, company or organization for goods and services that have been provided to them. eg. writing and delivering of invoice to each customer. In [balance sheets](, the [accounts receivable](, is the amount that customers owe a business. Also called as trade receivables.