Changes

An '''account receivable''' (AR) is money that a business entity, either an individual or a corporation, owes to another individual, business, or government, for services or goods that have been acquired and utilized, but not yet paid for. Although accounts receivable can exist for a wide range of products and services, they are usually due within a short time span, like a single operating cycle that that good or service. <ref name="invest">[http://www.investopedia.com/terms/a/accountsreceivable.asp Accounts Receivable]</ref>

An '''account receivable''' (AR) is money that a business entity, either an individual or a [[corporation]], owes to another individual, business, or government, for services or goods that have been acquired and utilized, but not yet paid for. Although accounts receivable can exist for a wide range of products and services, they are usually due within a short time span, like a single operating cycle that that good or service. <ref name="invest">[http://www.investopedia.com/terms/a/accountsreceivable.asp Accounts Receivable]</ref>

==On Financial Statements==

==On Financial Statements==

For public companies that are required to create and publicize certain financial statements, accounts receivable are almost always itemized as assets, because they represent a legal obligation that the customer or customer entity owes to the individual or business that performed the service or sold the good.  

For public companies that are required to create and publicize certain financial statements, accounts receivable are almost always itemized as [[assets]], because they represent a legal obligation that the customer or customer entity owes to the individual or business that performed the service or sold the good.  

An account receivable for one individual or corporation is virtually always an account payable for another business entity or individual.

An account receivable for one individual or corporation is virtually always an account payable for another business entity or individual.