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 ?
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.
Moreover, simply making a journal entry will create an imbalance in the general ledger; it will not agree with the sales journal or accounts receivable detail.
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.
Because the current standard makes clear the presumption that auditors need to confirm accounts receivable, practitioners must document carefully when they have not sent confirmations.
The ratio of accounts receivable estimated to be uncollectible is applied to the service provider's outstanding receivable, using either the "separate receivable system" or the "periodic system.
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.
At the end of the year, Bloomin Deals' accounts receivable reflect a balance of $48,000.
Biebesheimer & Sons stole approximately $300,000 over a period of several years by writing payroll checks to nonexistent employees and then inflating accounts receivable in order to hide the theft.

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