account receivable


account receivable

noun
plural accounts receivable

Definition of ACCOUNT RECEIVABLE

:  a balance due from a debtor on a current account

First Known Use of ACCOUNT RECEIVABLE

1812

account receivable

noun    (Concise Encyclopedia)

Any amount owed to a business as the result of a purchase of goods or services from it on a credit basis. Although the firm making the sale receives no written promise of payment, it enters the amount due as a current asset in its books. Accounts receivable constitute a major portion of the assets of many companies, and they may even be sold or pledged as collateral to obtain loans. See also account payable; factoring.

Browse

Next Word in the Dictionary: account render
Previous Word in the Dictionary: account payable
All Words Near: account receivable

Seen & Heard

What made you want to look up account receivable? Please tell us where you read or heard it (including the quote, if possible).

Get Our Free Apps
Voice Search, Favorites,
Word of the Day, and More
Join Us on FB & Twitter
Get the Word of the Day and More