What Are Accounts Receivable (AR)?

Patrick Curtis

Reviewed by

Patrick Curtis WSO Editorial Board

Expertise: Investment Banking | Private Equity

Accounts Receivable is an accounting term that represents a company's short-term credit. It is found under Current Assets on a Balance Sheet and Operating Activities on the Cash Flow Statement.

Accounts Receivable is when a customer owes money to the firm because they have received a good or service but have not yet paid for it. For example, purchasing a car on credit would come under Accounts Receivable for the firm you bought it from, as you have received the car but have not yet paid for all of it.

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Patrick Curtis

Patrick Curtis is a member of WSO Editorial Board which helps ensure the accuracy of content across top articles on Wall Street Oasis. He has experience in investment banking at Rothschild and private equity at Tailwind Capital along with an MBA from the Wharton School of Business. He is also the founder and current CEO of Wall Street Oasis. This content was originally created by member WallStreetOasis.com and has evolved with the help of our mentors.