Accounting for the Numberphobic

GLOSSARY

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accounts payable A current liability account on the Balance Sheet that typically captures outstanding invoices suppliers have sent the business for goods that have been shipped or services that have been rendered for the business. Also called payables.

accounts receivable A current asset account on the Balance Sheet that typically captures outstanding invoices that your business sends to customers after it ships merchandise or fulfills a service. Also called receivables.

accounts receivable turnover rate A measure of the efficiency of your collections department, indicating how many times a year it collects on receivables.

Accounts Receivable Turnover Rate =Yearly Credit Sales ÷ Accounts Receivables

accrual basis accounting A method ...