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Accounts receivable is money owed to a business by its clients (customers or debtors) and shown on its balance sheet as an asset. It is one of a series of accounting transactions dealing with the billing of a customer for goods and services that the customer has ordered. These may be distinguished from notes receivable, which are debts created through formal legal instruments called promissory notes. If you lack a foundation of financial accounting and want to start from scratch, you can consult my book: https://fourweekmba.com/the-three-most-important-financial-ratios-for-the-managern/
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