Accounts Receivable
/ˈəːkaʊnts rɪˈzivəbl/
Definitions
- (n.) Amounts of money owed to a business by its customers for goods or services delivered on credit.
The company's accounts receivable increased significantly this quarter due to higher sales.
Related terms
Commentary
In legal and financial contexts, accounts receivable represent a company's right to payment and are considered an asset; precision is needed when drafting contracts involving assignment or securitization of accounts receivable.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.