Account Receivable is an important part of any business. It is the money owed to a company by its customers for goods or services that have been provided. The term can be broken down into three parts: SAGA (an agreement between two parties), ASSET (something of value owned by a company) and IOU (an informal document acknowledging a debt). Together, these three components make up the term Account Receivable, which is a valuable ASSET for any business.