financial services

A/R

Definition

Abbreviation for accounts receivable.

Absolute-Bar Rule

Definition

A rule preventing a creditor who sells collateral in a commercially unreasonable manner, e.g. without giving reasonable notice to the debtor, from obtaining a deficiency judgment.

Illustrative caselaw

See, e.g. Beardmore v. American...

Account Debtor

Definition

Someone who owes an obligation by virtue of an account, chattel paper, or general intangible.

Illustrative caselaw

See, e.g. Nickey Gregory Co., LLC v. AgriCap, LLC, 597 F.3d 591 (4th Cir. 2010).

See also

Secured transactions

Account Receivable

Definition

See accounts receivable.

Account Stated

Definition

A statement between a creditor and a debtor that settles the total amount of debt owed to the creditor.

There are three elements of an account stated: (1) There exists prior transactions between the parties, creating a creditor-debtor...

Accountant

Definition

A professional who engages in accounting, which involves preparing and auditing financial statements, bookkeeping and financial analysis.

An accountant may also be qualified to give individuals or corporations tax advice and prepare...

Accounting

Definition

1) The procedure of recording, analyzing, summarizing and classifying the financial transactions and information of a person or business which aids in accurate administration of resources.

2) A plaintiff's legal action to recover money...

Accounts Payable

Definition

Short-term debt that a company owes to its suppliers for products received before payment is made. Accounts payable entries are listed under "Current Liabilities" in the business' balance sheet and the items are removed once the account has...

Accounts Receivable

Definition

Money owed to a business by another business or individual in exchange for property or services that were provided on credit. The settlement of an account receivable begins by sending an invoice to the customer. A company enters accounts...

Accrual Method of Accounting

One method of accounting where economic events, such as income and expenses, are recorded at the moment they are incurred, as opposed to when they are received. This provides a more accurate statement of the current financial state of a company and...

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