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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 ?
A receivables line of credit, which provides immediate cash and liquidity, enables ABC to meet its monthly obligations.
The NAE method permits certain service providers to exclude amounts from gross income that, based on experience, they do not expect to collect (based on a formula that takes into account the history of uncollected receivables relative to total receivables).
The second lesson: Accounts receivable are attractive fraud targets, primarily because of the way receivables are viewed by lenders.
The term for the receivable should be determined by measuring the period of time between the date on which the receivable is deemed created (i.
Monitoring receivables also offers long-term benefits for your company.
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.
His recourse factor charged an extra 1% for every 10 days beyond 30 days that the receivable was due.
The better programs in the industry can advance funds even if a receivable has not yet been billed.