Accounts Receivable - AR
On a public company's balance sheet, accounts receivable is often recorded as an asset because this represents a legal obligation for the customer to remit cash for its short-term debts
If a company has receivables, this means it has made a sale but has yet to collect the money from the purchaser. Most companies operate by allowing some portion of their sales to be on credit. These type of sales are usually made to frequent or special customers who are invoiced periodically, and allows them to avoid the hassle of physically making payments as each transaction occurs. In other words, this is when a customer gives a company an IOU for goods or services already received or rendered.
Accounts receivable are not limited to businesses - individuals have them as well. People get receivables from their employers in the form of a monthly or bi-weekly paycheck. They are legally owed this money for services (work) already provided.
When a company owes debts to its suppliers or other parties, these are known as accounts payable.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Accounts receivable — (A/R) is one of a series of accounting transactions dealing with the billing of customers who owe money to a person, company or organization for goods and services that have been provided to the customer. In most business entities this is… … Wikipedia
accounts receivable — Money due or owed to a business or professional by customers or clients for goods or services. Generally, accounts receivable refers to the total amount due to a business and is considered in calculating the value of the business. Category:… … Law dictionary
accounts receivable — A right to payment for goods sold or services rendered (SA Bankruptcy.com) United Glossary of Bankruptcy Terms 2012 … Glossary of Bankruptcy
accounts receivable — a record of what is owed to you. All of the credit accounts the record of what each customer owes you taken together are your accounts receivable . Glossary of Business Terms An asset account that reflects amounts due from private persons or… … Financial and business terms
Accounts receivable — Money owed by customers. The New York Times Financial Glossary * * * accounts receivable accounts receivable ➔ receivable * * * accounts receivable UK US noun [plural] also UK debtors, also US receivables) ACCOUNTING ► the amounts in a company s… … Financial and business terms
accounts receivable — trade debtors The amounts owing to a business from customers for invoiced amounts. Accounts receivable are classed as current assets on the balance sheet, but distinguished from prepayments and other non trade debtors. A provision for bad debts… … Accounting dictionary
accounts receivable — trade debtors The amounts owing to a business from customers for invoiced amounts. Accounts receivable are classed as current assets on the balance sheet, but distinguished from prepayments and other non trade debtors. A provision for bad debts… … Big dictionary of business and management
accounts receivable — noun a creditor s accounts of money owed to him; normally arise from the sale of products or services • Usage Domain: ↑plural, ↑plural form • Hypernyms: ↑assets * * * acˌcounts reˈceivable 7 [accounts receivable] … Useful english dictionary
accounts receivable — *Short term, invoiced amounts due from *customers for the supply of goods or services. Accounts receivable are classified as a *current asset in the balance sheet when their recoverability becomes doubtful, an *allowance for bad debts is created … Auditor's dictionary
accounts receivable — gautinos sumos statusas T sritis Gynyba apibrėžtis Sumos, kurios turi būti gautos iš skolininkų. atitikmenys: angl. accounts receivable šaltinis NATO mokymų ir pratybų finansavimo terminų žodynas AAP 43(1), 2009 … Lithuanian dictionary (lietuvių žodynas)