Which section of the Balance Sheet shows your Accounts Receivable balance?

The Accounts Receivable balance is reported in the Assets section of the Balance Sheet because it represents money that is owed to the business by customers for goods or services that have already been delivered but not yet paid for. This asset is considered a current asset, as it is expected to be collected within a year.

When preparing financial statements, items listed under Assets are resources that provide future economic benefits to the company. Accounts Receivable is classified under current assets because it is expected to convert into cash in the near term, contributing to the liquidity and financial health of the business. The other sections of the Balance Sheet—Liabilities, Equity, and Revenue—serve different functions and do not include Accounts Receivable. Liabilities reflect the obligations owed to others, Equity indicates the owners’ residual interest in the company, and Revenue accounts for income generated from operations, but not amounts receivable.