Glossary

Account debtor means a person responsible on an account, chattel paper, or general intangible.

An auditor's opinion is a written statement describing an auditor's independent, unbiased and qualified evaluation of the accuracy and completeness of a company's financial statements and practices, as well as an evaluation of a company's compliance with Generally Accepted Accounting Principles (GAAP).

Accounts payable (AP) is an accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. On many balance sheets, the accounts payable entry appears under the heading current liabilities.

Accounts payable turnover is a ratio that measures the speed with which a company pays its suppliers. If the turnover ratio declines from one period to the next, this indicates that the company is paying its suppliers more slowly, and may be an indicator of worsening financial condition.

Accounts receivable refers to the outstanding invoices a company has or the money the company is owed from its clients. The phrase refers to accounts a business has a right to receive because it has delivered a product or service.

When a borrower makes a sale, other than for cash, Accounts Receivable is debited. In simplest terms an Account Receivable Credit is an entry on the books that is needed to remove the Accounts Receivable. 

The client is buying on account or paying later, which makes it an Accounts Receivable, which is an asset. When an asset increases, it is a Debit.

An accounts receivable trial balance is an accounting tool used to total up all of the credits and debits pertaining to a company's accounts receivables.