Account Receivable

Pronunciation: /əˈkaʊnt rɪˈsivəbəl/

Definitions of account receivable

noun an amount of money owed by a customer to a business for goods or services provided on credit

Example Sentences

A1 An account receivable is money that a company is owed by its customers.

A2 The accountant is responsible for managing the company's account receivables.

B1 The company's financial health can be affected by the aging of its accounts receivable.

B2 The accounts receivable department works closely with the sales team to ensure timely payments.

C1 Analyzing the accounts receivable turnover ratio can provide insights into the company's efficiency in collecting payments.

C2 The company implemented a new software system to streamline the accounts receivable process.

Examples of account receivable in a Sentence

formal The company's financial statements show a high level of account receivable, indicating a strong sales performance.

informal We need to follow up on those account receivable to make sure we get paid on time.

slang I heard the boss is cracking down on late account receivable, so we better stay on top of it.

figurative Account receivable is like a ticking time bomb - if we don't manage it properly, it could blow up in our faces.

Grammatical Forms of account receivable

• plural: accounts receivable
• present tense: account receivable
• future tense: will account receivable
• perfect tense: have accounted receivable
• continuous tense: is accounting receivable
• singular: account receivable
• positive degree: more account receivable
• infinitive: to account receivable
• gerund: account receivabling
• participle: account receivable

Origin and Evolution of account receivable

First Known Use: 1601 year

Language of Origin: Latin

Story behind the word: The term 'account receivable' originated from the Latin word 'recipere' which means 'to receive'. It was later adapted into Old French as 'receivable' before being anglicized into 'receivable' in Middle English.

Evolution of the word: Originally used in accounting to refer to money owed to a company by its customers, the term 'account receivable' has evolved to encompass a broader range of assets that a company expects to receive in the future, including goods or services provided on credit.