Related Words

Accounts Receivable Financing: A loan gained by borrowing against receivables. Loans are paid down as receivables are collected.

Number Of Days Sales In Receivables: A measure of the average number of days it takes to collect a credit sale: computed by dividing 365 days by the accounts receivable turnover.

Note Receivable: A claim against a debtor, evidenced by an unconditional written promise to pay a certain sum of money on or before a specified future date.

Nominal Accounts: Accounts that are closed to a zero balance at the end of each accounting period: temporary accounts generally appearing on the income statement.

Net Realizable Value Of Accounts Receivable: The net amount that would be received if all receivables considered collectible were collected: equal to total accounts receivable less the allowance for uncollectible accounts: also called . . . View Full Definition

Off-Balance-Sheet Financing: Financing that is not shown as a liability on a company's balance sheet.

Personal Accounts: These are the accounts of a business's customers and suppliers. They are usually held in the Sales and Purchase Ledgers.

Permanent Financing: Long-term financing using either debt or equity.

Participation Financing: Where a lender becomes a partner in a development.

Net Financing Cost: Also called the cost of carry or, simply, carry, the difference between the cost of financing the purchase of an asset and the asset's cash yield. Positive carry means that the yield earned . . . View Full Definition