accounts receivable (A/R)
Definition
Sales made but not paid-for by the customers (trade debtors). Accounts receivables are shown as current (short-term) assets in a balance sheet and are, in fact, unsecured promises by customers to pay in the future. These sums are a key factor in determining a firm's liquidity and may be discounted—used in raising a short-term bank loan, or sold to a factor. A provision is usually made in the accounts of a firm to offset uncollectible accounts receivable (bad debts) as losses.
accounts receivable (A/R) is in the Accounting & Auditing, Banking, Commerce & Finance and Entrepreneurship, Management, & Leadership subjects.
accounts receivable (A/R) appears in the definitions of the following terms:
net realizable value of accounts receivable,
payment history analysis,
asset,
collection period ratio,
charge-off,
cash flows from operating activities,
revolving collateral,
accounts receivable (A/R) to sales ratio,
allied lines insurance,
sales journal
and
accounts receivable (A/R) appears in the other term: accounts receivable (A/R) turnover
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