Accounts Receivable
18 January 2010 by bbu09 Add a comment
Topics: BeaBu Glossary > A
Tags: accounting, accounts receivable, assets, receivables, working capital
Accounts receivable as an accounting term represent all money that the company’s customer owe to that company.
Accounts receivable increase when the company sells its products or services, but agrees with the customer to collect the cash later.
Accounts receivable decrease when the company’s customers repay the money owed.
In general having too much money in accounts receivable is a bad sign, as the company must find sources of financing for them. Accounts receivable are part of the company’s working capital.
 Twitter |
 Delicious |
 StumbleUpon |
Subscribe to BeaBu via RSS
Follow BeaBu on Twitter: @beabudotcom
Related articles
Topics: BeaBu Glossary > ATags: accounting, accounts receivable, assets, receivables, working capital