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Define the term Accounts Receivable

Accounts Receivable: The money owed by customers (that is, individuals or corporations) to other entity in exchange for services or goods that have been employed or delivered, however not yet paid for. Receivables generally come in the form of operating lines of credit and are generally due in a relatively short period of time, ranging from few days to a year.

On a public company's balance sheet, the accounts receivable is frequently recorded as an asset since this symbolizes a legal obligation for the customer to submit cash for its short-term debts.

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