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accounts receivable definition
the amounts of money due or owed to a business or professional by customers or clients.
Generally, accounts receivable refers to the total amount due and is considered
in calculating the value of a business or the business's problems in paying its
own debts. Evaluation of the chances of collecting based on history of customers'
payments, quality of customers and age of the accounts receivable and debts is important.
A big mistake made by people overly eager to buy a business is to give too high
a value to the accounts receivable without considering the chances of collection.
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