Accounts receivable is money that is owed to a government but hasn't been collected yet. For municipalities, this often includes unpaid property taxes, utility bills, or fees for services. The federal government's accounts receivable might include unpaid income taxes or student loan repayments. In financial statements, accounts receivable appears as an asset because it represents money the government expects to receive. However, not all receivables are collected—some become 'bad debts' when people or businesses can't pay. Governments must estimate how much of their receivables they'll actually collect, which affects budget projections.