Receivable Meaning: Definition, Examples, and Translations
💸
receivable
[rɪˈsiːvəb(ə)l ]
Definition
business
Amount of money owed to a company by its customers for goods or services provided on credit.
Synonyms
credit owed, money owed, outstanding balance.
Which Synonym Should You Choose?
Word | Description / Examples |
---|---|
receivable |
This term is used in accounting and finance to refer to money that is owed to a company by its customers for goods or services that have been delivered but not yet paid for.
|
money owed |
This phrase is commonly used to describe any situation where someone needs to pay back money, whether due to loans, services, or goods received.
|
outstanding balance |
This term is often used in financial statements and billing documents to indicate the amount of money that is still owed on an account.
|
credit owed |
This term is generally used in informal contexts to indicate money that needs to be paid back, often involving loans or informal borrowing.
|
Examples of usage
- Please follow up with the clients to ensure timely payment of receivables.
- The accounts receivable for this quarter have increased by 10% compared to last year.
- Managing receivables efficiently is essential for maintaining cash flow.
- Failure to collect receivables can lead to financial difficulties for the company.
- Companies often use software to track and manage their accounts receivable.
Translations
To see the translation, please select a language from the options available.
Interesting Facts
Business and Finance
- In accounting, receivables are classified as current assets because they are expected to be received within a year.
- Businesses track receivables carefully because they represent future cash flow, crucial for operations.
- An increase in receivables may indicate that more sales are occurring but could also suggest issues with collection.
Legal Aspects
- Receivables form part of the legal claims businesses have against their customers.
- In bankruptcy cases, the collection of receivables can be a key aspect of recovering debts owed.
- Some businesses sell their receivables to third parties, a process called factoring, to improve immediate cash flow.
Psychology
- The management of receivables reflects trust and accountability between businesses and their clients.
- Understanding how people feel about credit and payments can help businesses improve their collection strategies.
- The anticipation of getting paid can influence a business's mood and overall financial health.
Education
- Many finance courses cover the importance of managing receivables effectively to ensure business success.
- Educational institutions often use real-world examples involving receivables to teach accounting principles.
- Understanding receivables is crucial for students aspiring to enter fields like finance, accounting, and business management.
Origin of 'receivable'
Main points about word origin
- The term 'receivable' comes from the Old French word 'receivre', which means 'to receive'.
- It started being used in the English language around the 15th century, reflecting the concept of accepting or receiving something.
- In finance, it describes amounts that are owed to a business for goods or services already provided.
The word 'receivable' originated from the verb 'receive' in the late Middle English period. It evolved to describe the money that is expected to be received by a company for goods or services provided. The concept of receivables has been essential in business transactions, allowing companies to operate on credit terms while keeping track of amounts owed to them.
See also: receive, received, receiver, receivers, receiving, unreceived.
Word Frequency Rank
Position #9,188 indicates this is an advanced-level word. While not essential for basic communication, it will enhance your ability to understand and create more nuanced content.
- ...
- 9185 chargeable
- 9186 max
- 9187 mystical
- 9188 receivable
- 9189 facilitating
- 9190 occupants
- 9191 professed
- ...