Accounts receivable liability or asset is an important part of the balance sheet of any business. It accounts for all money owed to the company from customers, whether that be in the form of goods or services. In simple terms, it’s a report on who owes you money and how much. It is a crucial tool for assessing a company’s overall financial health because it gives an indication of how easily and quickly the company can pay its debts. As an asset, accounts receivable reflects the value of goods or services rendered, while as a liability, it indicates the amount that customers owe and need to pay. Knowing this information will help businesses make better decisions when it comes to expanding their finances.