Is accounts receivable a current asset

Yes, accounts receivable is classified as a current asset on a company's balance sheet. It represents the money owed to a business by its customers for goods or services delivered on credit. In the Indian accounting context, it is considered a current asset because it is typically expected to be converted into cash within one year or the normal operating cycle. Managing these receivables effectively is crucial for maintaining healthy cash flow and liquidity, ensuring the business can meet its short-term financial obligations.