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- Dictionaryaccounts receivable
plural
- 1. money owed to a company by its debtors.
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Aug 8, 2024 · Accounts receivable (AR) is an accounting term for money owed to a business for goods or services that it has delivered but not been paid for yet....
Definition: Accounts receivable, often abbreviated A/R, is the amount of money that customers currently owe to the company for goods or services that were purchased on credit. Many companies offer credit programs to customers who frequent the business or suppliers who regularly order products.
Accounts receivable is any amount of money your customers owe you for goods or services they purchased from you in the past. This money is typically collected after a few weeks and is recorded as an asset on your company’s balance sheet. You use accounts receivable as part of accrual basis accounting. Why is accounts receivable important?
Dec 7, 2023 · Accounts receivable refers to money due to a seller from buyers who have not yet paid for their purchases. The amounts owed are stated on that are issued to buyers by the seller. The issuance of an invoice implies that the seller has granted credit to a customer.
Jun 8, 2023 · Accounts Receivable: Definition. Accounts receivable arise from credit sales. For many retail firms, accounts receivable represents a substantial portion of their current assets. The function of a company's credit department is to establish and enforce credit policies.
What is Accounts Receivable (AR)? Accounts Receivable (AR) represents the credit sales of a business, which have not yet been collected from its customers. Companies allow their clients to pay for goods and services over a reasonable extended period of time, provided that the terms have been agreed upon.
Jan 8, 2021 · Accounts receivable (AR) are the amounts owed by customers for goods or services purchased on credit. The money owed to the company is called 'accounts receivable' and is tracked as an account in the general ledger, and then reported as a line on the balance sheet.
