Accounts Receivable

Definition:

Amounts due the business from customers for merchandise or services purchased on credit. The business does not receive payment for these amounts immediately; the delay before payment is referred to as “Days Sales Outstanding (DSO).” Like Accounts Payable, this might also refer to the department responsible for billing customers.

Examples:

Make sure that the accounts receivable for Acme are up to date before shipping anything else to them.

Accounts Receivable reports that Acme have not paid their bills for ninety days.