Accounts Receivable refers to the money owed to a business by its customers for goods or services that have been delivered but not yet paid for. This amount is recorded as an asset on the company's balance sheet, reflecting the expectation of future cash inflow. Managing Accounts Receivable is crucial for maintaining a healthy cash flow. Businesses often set payment terms and follow up with customers to ensure timely payments. Efficient management helps reduce the risk of bad debts and improves overall financial stability.