Accounts Receivable definition: Copy, customize, and use instantly
Introduction
The term "Accounts Receivable" refers to the amounts owed by customers or clients for goods or services that have been delivered but not yet paid for. It is a critical financial term, especially for businesses managing cash flow and working capital.
Below are various examples of how "Accounts Receivable" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Accounts Receivable" as outstanding invoices
This definition ties "Accounts Receivable" to unpaid invoices that a business is expecting to receive from its customers.
"Accounts Receivable" refers to the total outstanding invoices owed by customers for goods or services provided on credit, which are due for payment.
Definition of "Accounts Receivable" as current assets
This definition connects "Accounts Receivable" to current assets on a company’s balance sheet, representing amounts to be collected in the near term.
"Accounts Receivable" means the amounts owed to a business for goods and services provided, classified as current assets to be collected within the fiscal year.
Definition of "Accounts Receivable" in loan agreements
This definition links "Accounts Receivable" to loan agreements, where accounts receivable may be pledged as collateral.
"Accounts Receivable" refers to the outstanding amounts due to the borrower that are pledged as collateral in securing the loan.
Definition of "Accounts Receivable" as credit sales
This definition ties "Accounts Receivable" to credit sales, clarifying that the amounts due result from credit transactions.
"Accounts Receivable" means the amounts owed by customers resulting from credit sales, where payment is due at a later date.
Definition of "Accounts Receivable" as short-term assets
This definition links "Accounts Receivable" to short-term financial assets that will be converted to cash in the near future.
"Accounts Receivable" refers to short-term assets of a company, representing amounts owed by customers for products or services provided on credit.
Definition of "Accounts Receivable" in the context of retail businesses
This definition connects "Accounts Receivable" to retail businesses, where it reflects amounts due from customers who have made purchases on credit.
"Accounts Receivable" means the outstanding debts owed to a retail business by customers who made purchases on credit.
Definition of "Accounts Receivable" for service providers
This definition ties "Accounts Receivable" to service providers, referring to amounts due from clients for services rendered.
"Accounts Receivable" refers to the amounts owed by clients for services provided on credit, typically billed after the service has been completed.
Definition of "Accounts Receivable" for manufacturing companies
This definition connects "Accounts Receivable" to manufacturing companies, explaining the amounts due for the sale of manufactured goods.
"Accounts Receivable" means the outstanding invoices owed by customers for goods sold by a manufacturing company, typically on a credit basis.
Definition of "Accounts Receivable" for B2B transactions
This definition ties "Accounts Receivable" to B2B (business-to-business) transactions, where companies extend credit to other businesses.
"Accounts Receivable" refers to the amounts due from other businesses as part of business-to-business credit transactions.
Definition of "Accounts Receivable" for subscription services
This definition links "Accounts Receivable" to subscription-based services, where customers owe payments for recurring service usage.
"Accounts Receivable" means the unpaid fees owed by customers for subscription services, where charges are recurring over a specified period.
Definition of "Accounts Receivable" in contract law
This definition ties "Accounts Receivable" to contract law, referring to amounts owed under the terms of a contract for goods or services rendered.
"Accounts Receivable" refers to the sums owed to a party as stipulated in a contract for goods or services already provided to a buyer.
Definition of "Accounts Receivable" as a key financial metric
This definition connects "Accounts Receivable" to financial management, highlighting its importance as a key metric in tracking company liquidity.
"Accounts Receivable" refers to a key financial metric representing the amount of money owed by customers, serving as an indicator of company liquidity and cash flow.
Definition of "Accounts Receivable" for tax reporting purposes
This definition ties "Accounts Receivable" to tax reporting, explaining its role in financial reporting and tax obligations.
"Accounts Receivable" refers to amounts owed by customers for goods or services that have been billed but not yet collected, affecting financial statements and tax reporting.
Definition of "Accounts Receivable" for factoring purposes
This definition connects "Accounts Receivable" to factoring, where a business sells its receivables to a third-party company for immediate cash.
"Accounts Receivable" refers to the unpaid amounts owed by customers, which can be sold to a factoring company for immediate cash flow.
Definition of "Accounts Receivable" as part of working capital
This definition links "Accounts Receivable" to working capital, emphasizing its role in a company's day-to-day financial operations.
"Accounts Receivable" refers to the amounts owed by customers that contribute to a company’s working capital, available for ongoing operational expenses.
Definition of "Accounts Receivable" as an income stream
This definition ties "Accounts Receivable" to the income stream of a business, where the receivables represent expected income.
"Accounts Receivable" means the amounts owed to a business by customers, representing an income stream expected to be realized in the near term.
Definition of "Accounts Receivable" for financial statements
This definition connects "Accounts Receivable" to its role in a company’s financial statements, indicating the amounts to be received.
"Accounts Receivable" refers to the line item on a company’s balance sheet showing amounts owed by customers for goods and services delivered.
Definition of "Accounts Receivable" for international transactions
This definition ties "Accounts Receivable" to international transactions, clarifying how it applies to amounts owed in foreign currencies.
"Accounts Receivable" means the amounts owed by foreign customers in foreign currency for goods or services delivered across international borders.
Definition of "Accounts Receivable" for overdue accounts
This definition links "Accounts Receivable" to overdue accounts, specifying amounts that have not been paid within the agreed period.
"Accounts Receivable" refers to the overdue amounts owed by customers for goods or services, where payment has not been made within the agreed credit period.
Definition of "Accounts Receivable" for credit management
This definition connects "Accounts Receivable" to credit management, outlining its importance in managing a company’s credit risk.
"Accounts Receivable" refers to amounts owed to a business that need to be monitored for timely payments, forming a key part of credit management strategies.
Definition of "Accounts Receivable" as part of business valuation
This definition ties "Accounts Receivable" to business valuation, highlighting its importance in determining a company’s overall value.
"Accounts Receivable" means the total outstanding amounts owed by customers, which are considered when valuing a business for sale or acquisition purposes.
Definition of "Accounts Receivable" for collections management
This definition links "Accounts Receivable" to collections, explaining the process of managing overdue debts.
"Accounts Receivable" refers to the total amounts owed by customers, which are actively managed for collection to ensure payment is received.
Definition of "Accounts Receivable" for payment terms
This definition connects "Accounts Receivable" to payment terms, specifying how the due amount is calculated based on agreed-upon payment periods.
"Accounts Receivable" means the amounts owed by customers based on the payment terms set out in the sales contract, which may include a defined payment period.
Definition of "Accounts Receivable" as a liquid asset
This definition ties "Accounts Receivable" to its role as a liquid asset, explaining how it can be converted into cash.
"Accounts Receivable" refers to the amounts owed by customers, which are considered liquid assets since they can be quickly converted into cash.
Definition of "Accounts Receivable" for customer credit limits
This definition links "Accounts Receivable" to customer credit limits, clarifying how the business extends credit to customers.
"Accounts Receivable" means the amounts owed by customers based on the credit extended to them, subject to their credit limit.
Definition of "Accounts Receivable" for risk management
This definition connects "Accounts Receivable" to risk management, specifying the need to manage potential risks associated with unpaid invoices.
"Accounts Receivable" refers to amounts owed by customers, which are assessed and managed as part of a company’s risk management practices to prevent bad debts.
Definition of "Accounts Receivable" for business liquidity
This definition ties "Accounts Receivable" to business liquidity, emphasizing its role in maintaining cash flow.
"Accounts Receivable" means the amounts owed by customers, which are crucial to a business’s liquidity, ensuring there is sufficient cash flow to meet operational needs.
Definition of "Accounts Receivable" as trade receivables
This definition connects "Accounts Receivable" to trade receivables, which are amounts owed by customers as a result of credit sales.
"Accounts Receivable" refers to the trade receivables arising from credit transactions where customers are obligated to pay for goods or services delivered.
Definition of "Accounts Receivable" for annual reporting
This definition ties "Accounts Receivable" to the process of annual financial reporting, where it represents the sum of outstanding debts as of the end of the fiscal year.
"Accounts Receivable" means the total amount of unpaid debts owed by customers as of the end of the company’s fiscal year, reported in the financial statements.
Definition of "Accounts Receivable" as part of debt collection
This definition links "Accounts Receivable" to the debt collection process, indicating the unpaid amounts that a company seeks to recover.
"Accounts Receivable" refers to the sums of money owed by customers that are actively pursued for collection by the company’s debt recovery team.
Definition of "Accounts Receivable" in the context of a credit policy
This definition connects "Accounts Receivable" to a company’s credit policy, specifying how businesses manage outstanding amounts.
"Accounts Receivable" refers to the amounts owed by customers, managed under the company’s credit policy, and subject to payment terms as outlined in the credit agreement.
Definition of "Accounts Receivable" in financial forecasting
This definition ties "Accounts Receivable" to financial forecasting, where it is used to predict future cash flow based on expected payments from customers.
"Accounts Receivable" means the projected amounts owed by customers, considered in financial forecasting to estimate future cash inflows for the business.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.