Accounts Receivable Language Quiz

Invoicing

• Evaluation of a customer's creditworthiness before extending credit.
• Issuing bills for goods or services provided on credit.
• Conditions under which credit is extended to customers, including payment deadlines.
• Agreement allowing customers to purchase goods or services on credit from suppliers.

Collections

• Issuing bills for goods or services provided on credit.
• Analyzing receivables based on the length of time they have been outstanding.
• Process of gathering payments from customers who owe money.
• Maximum amount a customer is allowed to owe on credit.

Aging

• Average number of days it takes to collect payment after a sale.
• Issuing bills for goods or services provided on credit.
• Analyzing receivables based on the length of time they have been outstanding.
• Maximum amount a customer is allowed to owe on credit.

Bad debts

• Amounts owed by customers that are unlikely to be collected.
• Movement of money in and out of a business, influenced by credit sales and collections.
• Evaluation of a customer's creditworthiness before extending credit.
• Reserve set aside to cover potential losses from uncollectible accounts.

Credit terms

• Evaluation of a customer's creditworthiness before extending credit.
• Analyzing receivables based on the length of time they have been outstanding.
• Maximum amount a customer is allowed to owe on credit.
• Conditions under which credit is extended to customers, including payment deadlines.

Cash flow

• Analyzing receivables based on the length of time they have been outstanding.
• Average number of days it takes to collect payment after a sale.
• Movement of money in and out of a business, influenced by credit sales and collections.
• Conditions under which credit is extended to customers, including payment deadlines.

Credit limit

• Maximum amount a customer is allowed to owe on credit.
• Analyzing receivables based on the length of time they have been outstanding.
• Form filled out by a customer requesting credit, providing necessary information for credit assessment.
• Process of gathering payments from customers who owe money.

Days sales outstanding

• Analyzing receivables based on the length of time they have been outstanding.
• Movement of money in and out of a business, influenced by credit sales and collections.
• Issuing bills for goods or services provided on credit.
• Average number of days it takes to collect payment after a sale.

Credit analysis

• Average number of days it takes to collect payment after a sale.
• Measure of how efficiently receivables are collected during a period.
• Process of gathering payments from customers who owe money.
• Evaluation of a customer's creditworthiness before extending credit.

Receivables turnover

• Reserve set aside to cover potential losses from uncollectible accounts.
• Measure of how efficiently receivables are collected during a period.
• Amounts owed by customers that are unlikely to be collected.
• Agreement allowing customers to purchase goods or services on credit from suppliers.