Okuzeka
Accounting & Tax vocabulary · Invoices & Payments

Accounts receivable

Meaning in accounting & tax, with examples

nounCore term

In accounting & tax, accounts receivable means: Money that customers owe a company for goods or services it has already delivered on credit, and also the team that collects those payments.

In Turkish: ticari alacaklar, alıcılar, alacak hesapları

How it is used

Shortened to AR; a current asset on the balance sheet. Credit controllers chase overdue receivables, and an aging report shows how long each amount has been unpaid. UK: trade debtors.

Example sentences

  1. Accounts receivable over 90 days have doubled since last year.

  2. The accounts receivable team sends a reminder as soon as an invoice becomes overdue.

Common collocations

  • accounts receivable balance
  • collect receivables
  • AR aging report
  • overdue receivables
  • accounts payableMoney a company owes to its suppliers for goods or services bought on credit, and also the team that processes and pays those supplier invoices.
  • invoiceA document a seller sends to a buyer listing the goods or services supplied, the amount due, any VAT and the payment terms.
  • bad debtMoney owed by a customer that the company no longer expects to collect, for example because the customer has gone bankrupt.
  • current assetAn asset that is expected to be turned into cash, sold or used up within one year, such as cash, receivables, inventory and prepaid expenses.
  • payment termsThe conditions agreed between buyer and seller about when and how an invoice must be paid, such as 'net 30' or a discount for early payment.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Invoices & Payments

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This page explains English vocabulary for learners. It is not financial advice.