Are accounts receivable seen as an asset by businesses?

[accountinglads]

Is accounts receivable an asset? Accounts receivable is recognized as an asset in business. When people purchase goods using credit, a company is given the debt of that unpaid amount by these buyers. The company's expectation to receive the money soon makes it a current asset on the balance sheet. Looking at accounts receivable helps determine the liquidity and smoothness of a company's operations. As it forecasts future inflows, it is useful when determining manage credit and receivables.