Accounts Receivable (AR)

Beginner 💰 Finance / Accounting

Definition

Money customers owe you—the invoices you're desperately hoping will actually get paid.

Example Usage

Our AR aging report shows we're still waiting on $50K from that client from three quarters ago.

Origin

Counterpart to AP in double-entry bookkeeping systems

Fun Fact

Companies often hire collection agencies when AR turns into 'money we'll probably never see again'

Source: Standard accounting terminology

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