accounts receivable Definition | Business Dictionaries from AllBusiness.com
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Business Definition for: accounts receivable
accounts receivable

amounts due the company on account from customers who have bought merchandise or received services. Accounts receivable are presented as a current asset in the balance sheet.

See also accounts receivable turnover , aging of accounts
accounts receivable

money owed to a business for merchandise or services sold on open account, a key factor in analyzing a company's liquidity -its ability to meet current obligations without additional revenues.

See also collection ratio , accounts receivable turnover , aging schedule
accounts receivable

list of money owed on current accounts to a creditor , which is kept in the normal course of the creditor's business and represents unsettled claims and transactions. Accounts receivable normally arise from the sale of a company's products or services to its customers.

See also accounts payable
accounts receivable

In general: unpaid balance on a credit sale. Unpaid accounts receivable are a bad debt expense.
Advertising: amount due the agency on client billings.
Magazines: amount due the publisher on unpaid credit order subscriptions.

Copyright © 2005, 2000, 1995, 1987 by Barron's Educational Series, Inc., Reprinted by arrangement with Publisher.
Copyright © 2006, 2003, 1998, 1995, 1991, 1987, 1985 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright c 2000, 1994, 1987 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.

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