What is accounts receivable primarily associated with?

Accounts receivable is primarily associated with the amount due by customers who purchased on credit. This represents a claim for payment that a company has against its customers for goods or services that have been delivered but not yet paid for. When a business sells products or services on credit, it records this transaction as an increase in accounts receivable on its balance sheet, acknowledging that the company will receive payment in the future. This asset is crucial for assessing a company's liquidity and financial health because it illustrates the money that is expected to be converted into cash in the near term.

The other options do not accurately describe accounts receivable. Cash sales pertain to transactions where payment is received immediately, total assets encompass all resources owned by a company, and accounts payable refers to obligations of the company to pay off its short-term debts, which is the opposite of accounts receivable. Thus, identifying accounts receivable with customer credit transactions showcases its essential role in a company's credit operations and financial management.