Accounts Receivable is an asset account that documents all amounts of money owed to a company by its customers. This type of account is crucial for business owners as it keeps track of the total amount of money owed to them for goods or services purchased on credit terms. It’s important to note that Accounts Receivable can increase unexpectedly and can sometimes require additional capital in order to cover any losses from unpaid bills. By properly managing this type of account, businesses can ensure that their finances stay healthy and profitable!