Account receivable is a business asset, referring to money owed by customers or clients following the sale of products and services. It represents an obligation from the buyer to pay for goods or services provided by the seller. This obligation is considered a liability for the buyer until it is paid in full. For the seller, however, it is an asset because they are legally entitled to receive payment. In other words, as long as payment is due, it will continue to be accounted for as an asset on the balance sheet.