accounts receivable


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Related to accounts receivable: Accounts Receivable Management

accounts receivable

n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying its own debts. Evaluation of the chances of collecting based on history of customers' payments, quality of customers and age of the accounts receivable and debts is important. A big mistake made by people overly-eager to buy a business is to give too high a value to the accounts receivable without considering the chances of collection.

accretion: n. 1) in real estate, the increase of the actual land on a stream, lake or sea by the action of water which deposits soil upon the shoreline. Accretion is Mother Nature's little gift to a landowner. 2) in estates, when a beneficiary of the person who died gets more of the estate than he/she was meant to because another beneficiary or heir dies or rejects the gift. Example: if a brother and sister were supposed to divide a share of Dad's estate, but Brother doesn't want it, then Sister's share grows by accretion. 3) in trusts, accretion occurs when a beneficiary gets a surprising increase in benefits due to an unexpected event. (See: probate, trust)

References in periodicals archive ?
NEW ORLEANS -- The Receivables Exchange, the world's first online marketplace for real-time trading of accounts receivable, today announced that it has partnered with Smyth Solutions, LLC, a leader in credit, collections and accounts receivable technology, information and outsourcing.
While sales and accounts receivable were mushrooming, cash was actually decreasing.
Through this new entity, we will be able to offer more customers a complete suite of working capital and accounts receivable financing solutions while building upon SFS' and First Capital's commitment to excellence.
Generally, the current assets of accounts receivable and inventory serve as the borrowing base for a revolving credit facility that can be drawn down and repaid.
Even though we've grown to the point where we can get bank loans for equipment purchases, we still borrow against our accounts receivable for cash flow.
Under the second method, which is a variation of the Black Motor formula, a taxpayer can determine uncollectible NAE amounts by multiplying its year-end accounts receivable balance by a three-year moving-average percentage, reflecting its actual NAE as to its accounts receivable balance at the beginning of the current tax year and the two immediately preceding tax years.
But if she had skimmed from accounts receivable, she would need to create a fictitious entry to credit the customers' accounts; otherwise, the books would be out of balance.
The procedure provides no clear advice, however, on what specific rate should be used once the accounts receivable are established.
Currently, First Capital provides accounts receivable and inventory financing to businesses located East of the Rocky Mountains by either purchasing the businesses' accounts receivable or by structuring a working capital loan secured by its accounts receivable and inventory.
There are two ways to reduce the risk of losses resulting from problems in the accounts receivable department.
A typical business that extends credit will have 10% to 20% of its annual sales tied up in accounts receivables at any given time, adds Jones.
Kaulkin Ginsberg foresees an increase in strategic acquisitions within the Accounts Receivable Management Industry in 2007

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