Definition

Accounts receivables

 The right of receive money of a firm from customers (individuals or corporations) because the firm had provided customers with goods and/or services on credit but not yet paid for, is known as Account receivables. Accounts receivable is shown in a balance sheet as an asset.Objectives of acccounts receivables are 

(i)Growth in sales, (ii) Growth in profits and (iii) Meeting Competition.

According to O.M Joy, “The term receivables is defined as debt owed to the firm by customers arising from sale of goods or services in the ordinary course of business.”

 

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