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what do you mean by Account receivables
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Answer Posted / saurabhsingh ruhela
Accounts receivable (A/R) is one of a series of accounting
transactions dealing with the billing of customers who owe
money to a person, company or organization for goods and
services that have been provided to the customer. In most
business entities this is typically done by generating an
invoice and mailing or electronically delivering it to the
customer, who in turn must pay it within an established
timeframe called credit or payment terms.
An example of a common payment term is Net 30, meaning
payment is due in the amount of the invoice 30 days from
the date of invoice. Other common payment terms include Net
45 and Net 60 but could in reality be for any time period
agreed upon by the vendor and the customer.
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