Accounts receivable affects a company’s liquidity since it is an amount of money that is most likely to be realized in the future. Liquidity applies to the rate at which an asset can be sold to generate the cash that is required in a particular business. Due to the fact that accounts receivables are likely to be realized within a relatively short time (often within 30 to 90 days), they are regarded as current assets, which accrues an immediate, often instant effect on the company’s capability to meet its short-term liabilities. That is why the company’s liquidity could be a vital issue among them and if collection is slow then the ability to pay for immediate needs could be slightly affected.

Source: https://accountingbyte.com/is-accounts-receivable-an-asset/