Accounts receivable

financial transaction and a type of debtor finance in which a business sells its accounts receivable (i.e., invoices) to a third party (called a factor) at a discount

legally enforceable claim for payment to a business by its customer/ clients for goods supplied and/or services rendered in execution of the customer’s order

monetary amount owed to a creditor that is unlikely to be paid

operating revenues earned by a company for selling its products or rendering its services

effectiveness of a business in collecting its credit sales from customers

recovery of cash from a business or individual

Average elapsed time (in days) between a sale and the collection of cash. Reciprocal of Receivables turnover ratio.