The-definition.com

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.”

 

Share it:  Cite

More from this Section

  • Foreign Exchange Transactions
    A foreign exchange transaction is an agreement between a buyer and seller that a fixed ...
  • Target zones
    Target zones— implicit boundaries established by central banks on exchange rates. ...
  • Bailout bond
    Bailout bond is a bond issued by the Resolution Funding Corporation (Refcorp) to save ...
  • Customs Duty
    Customs Duty is tax levied by the government on goods crossing their borders, usually ...
  • Trust
    Trust is defined as the belief in the integrity, character, and ability of a leader. Followers ...