account receivable
C1Formal, Business, Financial, Accounting
Definition
Meaning
A sum of money owed to a business by a customer for goods or services delivered but not yet paid for.
In accounting, it represents a current asset on a company's balance sheet, indicating future cash inflow. It is created when a sale is made on credit terms.
Linguistics
Semantic Notes
Always used in the singular form when referring to a specific debt, but often pluralized ('accounts receivable') to refer to the total amount owed by all customers or the department managing such debts. It is a compound noun functioning as a single lexical unit.
Dialectal Variation
British vs American Usage
Differences
No significant lexical or conceptual differences. The term is standard in international accounting. Spelling follows regional conventions (e.g., 'cheque' vs. 'check' in related contexts).
Connotations
Identical technical and financial connotations in both varieties.
Frequency
Equally high frequency in professional business and accounting contexts in both the UK and US.
Vocabulary
Collocations
Grammar
Valency Patterns
The company has an account receivable from [Client Name].We need to follow up on the account receivable for [Invoice Number].The account receivable was recorded in the ledger.Vocabulary
Synonyms
Strong
Neutral
Weak
Vocabulary
Antonyms
Phrases
Idioms & Phrases
- “Turn accounts receivable into cash.”
Usage
Context Usage
Business
Primary context. Refers to assets and cash flow management. E.g., 'The finance team is reviewing aged accounts receivable.'
Academic
Used in economics, finance, and business studies textbooks and lectures.
Everyday
Very rare. Would only be used by someone discussing business finances in a non-professional setting.
Technical
Core term in accounting, auditing, and financial reporting. Has specific rules for recognition and valuation.
Examples
By Part of Speech
verb
British English
- The clerk will account for the receivable by the end of the day.
American English
- The clerk will account for the receivable by the end of the day.
adjective
British English
- The receivable amount was substantial.
American English
- The receivable amount was significant.
Examples
By CEFR Level
- The company has money coming in from accounts receivable.
- Managing accounts receivable is crucial for maintaining healthy cash flow.
- The auditor scrutinised the ageing schedule of accounts receivable for any potentially uncollectible debts.
Learning
Memory Aids
Mnemonic
Think: An account receivable is money you are scheduled to RECEIVE from someone who owes you.
Conceptual Metaphor
MONEY IS A FLUID (cash flow), DEBT IS A BURDEN (on the debtor) / AN ASSET (for the creditor).
Watch out
Common Pitfalls
Translation Traps (for Russian speakers)
- Avoid direct calque 'счёт получаемый'. The standard term is 'дебиторская задолженность'.
- Do not confuse with 'входящий счёт' (incoming invoice).
- Remember it is an asset ('актив'), not a debt of the company itself.
Common Mistakes
- Using it as a verb (e.g., 'We will account receivable the invoice').
- Confusing it with 'account payable' (money you owe).
- Misspelling as 'account recievable'.
- Using plural verb with singular 'account receivable' (e.g., 'The account receivable are large').
Practice
Quiz
What is the primary characteristic of an 'account receivable'?
FAQ
Frequently Asked Questions
It is singular, referring to one specific debt. The plural is 'accounts receivable', referring to all such debts collectively or the accounting category.
An account receivable is money owed TO your business (an asset). An account payable is money YOUR business owes TO others (a liability).
It appears as a current asset on the Balance Sheet (Statement of Financial Position).
Yes, commonly abbreviated as 'AR' or 'A/R' in business and accounting contexts.
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