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.

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