Accounts receivable - ar, Accounting Basics

Assignment Help:

Money payable by customers (individuals or corporations) to the other entity in exchange for goods or services that have been given or used, but not yet paid for. Receivables typically come in the form of operating lines of credit and are generally due within a comparatively short time period, varying from a few days to a year. 

On a public company's balance sheet, accounts receivable is frequently entered as an asset as this presents a legal obligation for the customer to pay cash for its short-term debts

If a company has receivables, this shows it has made a sale but has still to collect the money from the buyer. Most companies function by allowing a little portion of their sales to be on credit. This kind of sales are generally made to frequent or special customers who are invoiced regularly, and allows them to evade the hassle of physically making payments as every transaction takes place. In other words, this is when a customer provides a company an IOU for goods or services previously received or rendered.

Accounts receivable are not restricted to businesses - individuals have them too. People get receivables by their employers in the form of a bi-weekly or monthly paycheck. They are legally paid this money for services (work) already given. 

When a company pays debts to its suppliers or other parties, these are referred to as accounts payable.

 

 

 


Related Discussions:- Accounts receivable - ar

How would you summarize apple''s cash flow position, How would you summariz...

How would you summarize Apple's cash flow position and what does this statement tell you about where the money is coming from and where it's going? What should Apple do to improv

Show payment of a liability, Q. Show payment of a liability? Accountant...

Q. Show payment of a liability? Accountants are able to easily measure some changes in assets and liabilities such as the acquisition of an asset on credit and the payment of a

Statement of cash flow, in cash flow statement, deductions from cash expenc...

in cash flow statement, deductions from cash expences and payments to creditor. how do you get this answer

Difference between consignor and consignee, Consignor is the person who is ...

Consignor is the person who is the holder of the goods and who distribute the goods to the consignee. Consignee is the person who takes the goods and he just possesses the goods

Non-compliance, Elaborate the consequences of non-compliance of each of the...

Elaborate the consequences of non-compliance of each of the accounting concepts.

Describe about cash role in balance sheet, Q. Describe about Cash role in b...

Q. Describe about Cash role in balance sheet? Cash includes deposits in banks obtainable for current operations at the balance sheet date plus cash on hand consisting of un-dep

On january 1, on January 1,20x1,A had 200,000 shares of $5 par value common...

on January 1,20x1,A had 200,000 shares of $5 par value common stock outstanding. On January 15 declared a cash dividend of $0.5 a share

Account and rules of debit and credit, A business may perhaps engage in tho...

A business may perhaps engage in thousands of transactions during a year. An accountant summarizes and classifies the data in these transactions to create useful information.

What is passage of title in transpotation, Q. What is Passage of title in t...

Q. What is Passage of title in transpotation? Passage of title is a term that point to the transfer of the legal ownership of goods. Title to the goods usually passes from sell

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd