Define 'accounts receivable'.

Accounts receivable refers to the amounts owed to a business by its customers for goods or services that have been delivered or provided but not yet paid for. This means that when a company sells something on credit, it records this transaction as an account receivable, indicating that the customer will pay the amount owed in the future.

This concept is crucial in accounting because it affects cash flow, profitability, and the overall financial health of a business. Proper management of accounts receivable can help ensure that a business maintains adequate liquidity and can meet its short-term obligations.

In contrast, the other options refer to different financial concepts. Funds available in a business's bank accounts represent cash or cash equivalents, while outstanding loans refer specifically to borrowed amounts rather than sales made on credit. Lastly, cash collected from customers pertains to payments that have already been received, rather than amounts that are still owed. Thus, the correct interpretation of accounts receivable is specifically about the money customers owe for goods or services provided on credit.