Accounts Receivable
Definition:"Accounts receivable" is a financial term that refers to the money that a business is owed by its customers for products or services that have been sold but not yet paid for. Essentially, it represents the amount of money the business expects to receive in the future.
Usage Instructions: - This term is used mostly in business and finance contexts. - It is a noun, so it can be used as a subject or object in a sentence.
Example: - "The company’s accounts receivable increased this month because many customers bought products but have not paid yet."
Advanced Usage: In financial reports, accounts receivable is often shown as a line item on the balance sheet. Monitoring accounts receivable is crucial for businesses because it indicates how much money is outstanding and helps in managing cash flow.
Word Variants: - Singular: account receivable (when referring to one specific amount owed) - Plural: accounts receivable (when referring to the total amounts owed)
Different Meanings:While "accounts receivable" primarily refers to money owed to a business, the term "receivable" on its own can refer to any amount that is due to be received (not just from customers).
Synonyms: - Receivables (shortened form) - Outstanding invoices - Money owed
Idioms and Phrasal Verbs:There aren't specific idioms or phrasal verbs that directly relate to "accounts receivable," but here are a couple of phrases you might encounter: - "Cash flow": This refers to the total amount of money being transferred into and out of a business, which is closely related to accounts receivable because timely collections can impact cash flow. - "Collect on accounts": This means to obtain payment for the money owed.