Canadian Financial, Real Estate and Mortgage Glossary

Accounts Receivable

Definition of accounts receivable (A/R, AR)

Related Terms and Acronyms:

• accounting period (AP)   The time period used in a set of accounting books or financial statements, often 12 months.
• accounts payable (A/P, AP)   Money owed by a business for goods and services received.
• accrued interest receivable (AIR)   When interest on an outstanding receivable has been added to the account, but has not yet been collected.
• balance (bal.)   The amount of money in your account.
• billing and accounts receivable (BAR)
• cost of goods sold (COGS)   An expense that appears on a business's income statement and represents the inventory cost of the goods sold during a particular period.
• gross profit margin   The difference between the sales your business generates and the costs you pay out for goods.
• retained earnings   All of the profits or losses accumulated from prior years and from the present year's income statement, minus dividends paid to you.
• revenue   Money earned by a company from its business activities.