Contract Asset

A contract asset is an accounting term that refers to a situation where a company has a right to receive payment for goods or services it has provided, but for which it has not yet billed the customer. Essentially, it represents work completed or resources delivered that the company expects to be paid for in the future. This asset is often recorded on a company's balance sheet, indicating the value of the service or product delivered that has not yet been recognized as revenue or invoiced to the customer.