Accounts receivable

Accounts receivable is an item on a company's balance sheet that represents cash payments from the company's customers usually within a period of 90 days or less. This bill is sent to a customer by the company that is expected to be paid. This is a solvency issue for the company because this has to be collected in a consistent manner or otherwise the company's cash flow would be affected and would have to resort to borrowing to keep the business running.