Overview of Receivables

A receivable is money owed to a business by its clients and shown on its balance sheet as an asset.

Receivables can generally be classified as accounts receivables or notes receivable, though there are other types of receivables as well.

If you are operating under the accrual basis, you record account receivable transactions irrespective of any changes in cash.

Receivables of all types are normally reported at their net realizable value, which is the amount the company expects to receive in cash.