What does accounts receivable mean?

accounts receivable meaning in Legal Dictionary

n. the quantities of money due or owed to a small business or professional by clients or consumers. Usually, accounts receivable refers to the complete amount due and is considered in calculating the worthiness of a business and/or business's issues in paying its very own debts. Analysis regarding the chances of obtaining according to reputation for consumers' payments, quality of consumers and age the records receivable and debts is important. A big error created by individuals very wanting to buy a company is to offer way too high a value towards the records receivable without thinking about the likelihood of collection.

accounts receivable meaning in Finance Dictionary

quantities due to an organisation or individual from another for products or solutions this has provided.

accounts receivable meaning in Law Dictionary

Trade credit produced by an organization when it permits a client to cover as time goes on for items or services which have been already delivered by the business. A client organization is generally needed to arrange repayment within 7 to 180 times, though in some instances terms may increase further. In exchange for granting the repayment expansion, the organization implicitly or clearly charges its clients a financing price. Receivables given in regular span of company tend to be consistently offered to third events on a nonrecourse basis (FACTORING) or utilized as COLLATERAL to secure investment (FINANCING); sometimes they are repackaged and offered through a SECURITIZATION. See also REPORTS PAYABLE.

accounts receivable meaning in General Dictionary

a creditor's records of income owed to him; normally arise through the purchase of products