ACCOUNTS RECEIVABLE Definition

Bookmark and Share

ACCOUNTS RECEIVABLE is a current asset representing money due for services performed or merchandise sold on credit.

Learn new Accounting Terms

INVENTORY VARIANCE see VARIANCE.

COMPLETED CONTRACT METHOD OF ACCOUNTING is a method of revenue recognition for long-term contracts (i.e., contract which span more than one accounting period) whereby the total contract revenue and related cost of performance are recognized in the period in which the contract is completed. This method stands in contrast to the percentage-of-completion method of accounting and is most often used when significant uncertainty exists with respect to the total cost of performing the contract and, accordingly, the ultimate amount of profit to be recognized thereon.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.