Accounts receivable

SeekingAlpha  Sep 8  Comment 
By John Leonard, CFA: Company overview Ecology and Environment (NASDAQ:EEI) is an environmental consulting firm that has completed >50,000 projects in >120 countries for government and private sector clients since its inception in 1970. ...
Banking Business Review  Sep 8  Comment 
The Governing Council of the European Central Bank (ECB) has decided to modify the loan-level reporting requirements for asset-backed securities (ABSs) backed by auto loans, leasing receivables, consumer finance loans and credit card receivables...  Aug 20  Comment 
Visit at for the full story.
Insurance Journal  Aug 12  Comment 
XL Group announced that it is addressing “businesses’ growing interest in Trade Receivables Insurance (TRI),” with the addition of “underwriting resources with the appointments of Jennifer Papadimitriou in London; Paul C. Haigley III and...
Forbes  Aug 7  Comment 
In a perfect world, all receivables turn into revenue. However, for the majority of U.S. small businesses, recovering funds can prove to be an arduous, time-consuming and costly endeavor.
The Economic Times  Jul 23  Comment 
The guidelines follow RBI Governor Raghuram Rajan’s promise of setting up one on the first day of taking charge last year.
DailyFinance  Jul 17  Comment 
Company Collecting on Accounts Receivable for Sales of the Compression Knee Sleeve Using FBC's Copper Tech Fabric -- Cash Received to Be Reflected in 3rd Quarter DisclosuresNEW YORK, NY -- (Marketwired) -- 07/17/14 -- FBC Holding, Inc....
SeekingAlpha  Jul 9  Comment 
By Kapitall: The S&P 500 notched above its all-time high last week. It's the sixth consecutive quarterly gain for the index, extending the bull market into the summer. Many analysts are attributing the growth to an unexpected rise in Chinese...
SeekingAlpha  Jun 23  Comment 
By Ethan Daniel: PRAA: The Numbers Simply Don't Add Up Portfolio Recovery Associates, Inc. (PRAA) is a full-service provider of outsourced receivables management. Incorporated in 1996, PRAA went public in 2002, and has become a major player in...


Accounts receivable are money owed to a business by its customers from goods or services sold that have not yet been paid for.

Accounts receivable (alternately "receivables") are created when a customer purchases goods or services from a company but does not pay for them at the time of purchase. Instead, the company issues an invoice for the goods or services at a later date, often at the end of the month. The amount due on the invoice is considered accounts receivable for the company. Receivables are treated as current assets on a company's balance sheet. Receivables are entered into a company's books when they receive an invoice for a good or service provision (and not before), as the invoice proves that money is legally owed to the company by an outside entity.

Receivables are typically issued by companies to reliable customers, since they are selling their goods on credit.


A car dealer buys five cars from Ford Motors but does not pay for the cars at the time of purchase. When Ford issues an invoice to the buyer, Ford also creates an accounts receivable entry on its balance sheet. The accounts receivable are settled once the dealer pays Ford in full for the cars.

For the car dealer, the invoice represents accounts payable, or money they have to pay to another company for already purchased goods or services. When the dealer pays Ford Motors, Ford then converts its accounts receivable to cash on its balance sheet.

Entry at the Time of Issue Invoice:

Car Dealer A/c Dr.

  To Sales A/c Cr.
Please install Flash Player to view this chart.
Please install Flash Player to view this chart.
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki