What are accounts receivable budgets and what cash receipts budget means.© BrainMass Inc. brainmass.com October 6, 2022, 10:46 am ad1c9bdddf
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Receivables represent claims for money, goods, services and other non cash assets from other entities. Receivables may be current or non current, depending on the expected collection date. Accounts receivable, also refered to as trade receivables, are amounts owed by customers for goods and services sold in the firm's normal course of business. Accounts receivable are recognized only when the criteria for recognition are fulfilled. A/R are recognized when there has been an agreement with the customer, which may be before or after the point at which revenue is recognized, but is usually the revenue recognition point.
When your teacher is using the word "budget", he/she is using that word to explain what is the "expected" level of receivables, and the "expected" amount of cash receipts (ie. cash inflows) for that given period of time.© BrainMass Inc. brainmass.com October 6, 2022, 10:46 am ad1c9bdddf>