I am creating a new Account type but not sure what to set in the Type field. We are choosing between Accounts Receivable and Other Current Assets. How do these two types differ and what are the impacts of choosing one over the other?

"Account Receivables" accounts would allow you to track AR aging for customer transactions like Invoices, Credit Memos, Payments etc. They can also be setup on customers for defaulting on transactions. Other current assets can be assigned to other asset accounts like Inventory, prepaid expenses etc. Both of these accounts show up on Balance Sheet.

Thank you @Ashish Atri

Note @evelet that if you classify something as "Accounts Receivable", transactions for it will show up on the AR Aging report. If you don't want that to happen, you probably shouldn't use that type.

Got it. thanks @RJMNS