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Related to receivable: Notes Receivable, Receivable Turnover

Accounts Receivable

1. Money that a customer owes a company for a good or service purchased on credit. Accounts receivable are current assets for a company and are expected to be paid within a short amount of time, often 10, 30, or 90 days. See also: Collection period.

2. A unit within a company's accounting department that deals with accounts receivable.



Money due from tenants or clients. Receivables are listed as an asset on the balance sheet. One can have a profit on paper, because all the rent charged to tenants counts as income, whether collected or not.One can also have a large amount of assets and be worth a lot of money, on paper, because unpaid rents—receivables—are listed as an asset. At the same time everything looks rosy on paper, you can be going broke because tenants are not paying their rent, you don't have any hope of ever collecting the past-due receivables,and there is no money to pay the bills.

(Remember this when reviewing financial information for a rental property: you must see the balance sheet and the financial statements at the same time to figure out what is really happening.)

References in periodicals archive ?
By combining early due diligence with close attention to aging receivables and using strategies like keeping backup credit card numbers on file, small-business owners can get a handle on their account receivables and keep their bottom lines healthy, even when customers are dealing with their own economic challenges.
In the wake of National Century Financial Enterprises' (NCFE) well-publicized bankruptcy in late 2002, some nursing home operators might now be thinking twice about securing credit based on their outstanding receivables.
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.
While sales and accounts receivable were mushrooming, cash was actually decreasing.
The procedure provides no clear advice, however, on what specific rate should be used once the accounts receivable are established.
As receivables are conveyed to the trust, the reserve account is funded with a deposit of 4.
At the end of each fiscal month group all your receivables in either current, 30-days, 60-days or 90-days to identify problem accounts.
For most companies, accounts receivable represent their greatest source of working capital, with more than 60% tied up in outstanding invoices.
The collection of the receivables would produce income, as each collection would involve realizing an amount greater than the partnership's basis in the receivable.
Auditors have to decide whether they can use negative accounts receivable requests.
Your business is amassing an impressive list of clients and receivables are growing.