accounts receivable

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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)

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References in periodicals archive ?
For example, a company reports on its balance sheet current assets of $10 in cash, $20 in accounts receivable and $50 in inventory.
Corazon Gomez, COA Central Luzon regional director, said P3.495 billion or 85 percent of the reported accounts receivable as of Dec.
Although the firm cannot distinguish between the paying and nonpaying customers in advance, sometimes from past experiences the firm knows with a reasonable degree of certainty that a number representing a certain portion of accounts receivable will never be collected, and hence that much amount must be written off from the profit.
The age of the accounts receivable and inventory is also a major area of consideration.
Other machinery companies reported similar problems: at Shanghai-listed First Tractor, accounts receivable rose 169 per cent from the beginning of the year, the report added.
The Tax Court held that the Maguires could deduct the losses from the auto dealership because they made a basiscreating economic outlay when they contributed the accounts receivable from the finance company to the auto dealership.
* The various activities associated with 2the accounts receivable process should be performed by different individuals (segregation of duties)
The balance sheet reveals fixed capital efficiency and working capital efficiency through metrics such as fixed-asset turnover, accounts receivable days-of-sales-outstanding (DSO), inventory turns, and accounts payable days-of-purchases-outstanding (DPO).
One way to get cash for operating expenses is to sell your accounts receivables to companies that will buy your invoices and collect payment from your customers.
They have an integrated property management system that tracks tenants, handles general ledger work and accounts receivable.
In 1985 Peat discovered 30% of Top Brass's accounts receivable were uncollectible.
Under the programme, Banamex extended credit to OSA to finance accounts receivables due from Pemex.

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