Accounts receivable Accounts receivable refers to short-term amounts due from buyers to a seller who have purchased goods or services from the seller on credit. Credit is usually granted in order to gain sales or to respond to the granting of credit by competitors. Accounts receivable is listed as a current asset on the seller's balance sheet. The total amount of accounts receivable allowed to an individual customer is typically limited by a credit limit, which is set by the

Updated Aug 14, 2018 What is Working Capital Working capital, also known as net working capital, is the difference between a company’s current assets, like cash, accounts receivable (customers’ unpaid bills) and inventories of raw materials and finished goods, and its current liabilities, like accounts payable. Working Capital = Current Assets - Current Liabilities BREAKING DOWN Working Capital Working capital is a measure of both a company's operational efficiency and its sh