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

  • Deposit Account
    A deposit account is an account provided by a bank or other financial institution for ...
  • Contractual liability
    Contractual liability is a legal liability of another party that the business firm agrees ...
  • Glass-Steagall Act
    Glass-Steagall Act is the law passed by the U.S. Congress in 1933 that legally mandated ...
  • Accumulation
    Accumulation is in the context of corporate finance, refers to profits that are added ...
  • Deductible Expense
    Deductible expense is an expense that the taxpayer uses to reduce taxable income before ...