Are Accounts Receivable An Asset; listed in the current assets sub-section of the balance sheet. It captures the overall sum of money owing by customers, which the company is in a position to recover within the usual cycle of business operations. High accounts receivable can increase the total amount of assets particularly the current assets in the short run, however, poor collection can lead to poor cash collections. Hence, there is a huge importance of management of accounts receivables as it has a significant impact on the financial strength and running of the operating working capital of any firm.
