Term of the Day Monday, September 25, 2017
accounts receivable
Definition
Money which is owed to a company by a customer for products and services provided on credit. This is often treated as a current asset on a balance sheet. A specific sale is generally only treated as an account receivable after the customer is sent an invoice.
See also: List of Key Accounting Terms and Definitions at InvestorGuide.com.
See also: List of Key Accounting Terms and Definitions at InvestorGuide.com.
Use accounts receivable in a sentence
“ You need to make sure that you have good records of all of your accounts receivable so that you can know where your funds stand. ”
“ We have recently entered into a factoring agreement to fund the increase in our accounts receivable as a result of an increase in sales. ”
