Accrued receivables arise when the company has earned something, but has not yet been paid.

Question

Quizplus · Accepted Answer

Accrued receivables, also known as accounts receivable, represent amounts owed to a company for goods or services that have been provided but not yet paid for. This is a common occurrence in many businesses, especially those that provide services on credit or have long payment terms. As such, accrued receivables reflect a company's potential cash flow and are an important part of its financial statements.

Accrued Receivables Arise When the Company Has Earned Something, but Has