What is accouts receivables

Question

Accepted Answer

Accounts receivable refers to the money owed to a company by its customers for goods or services provided on credit.

Accounts receivable is an asset on a company's balance sheet.
It represents the amount of money that customers owe to the company.
It is created when a company sells goods or services on credit terms.
Accounts receivable is typically collected within a specified period, known as the credit period.
Companies often use aging schedules to track and manage their accounts receivable.
Example: If a company sells products worth $10,000 to a customer on credit, the $10,000 becomes accounts receivable until the customer pays.
Example: If a company offers a 30-day credit period, the accounts receivable should be collected within 30 days.

Accepted Answer

AR is the payment which the company will receive from its customers who have purchased it's good s and services on credit

Accepted Answer

Accounts Receivable is the proceeds or payment which the company will receive from its customers who have purchased its goods & services on credit.the sale is realised when the invoice is generated, but the company extends a time period to the customers to pay the amount after some time.

What is accouts receivables

Top Nexdigm Associate interview questions & answers

Popular interview questions of Associate

Top HR questions asked in Nexdigm Associate