answersLogoWhite

0

Net on-demand accounts receivable refers to the total amount of money that a company expects to collect from its customers for goods or services provided, minus any allowances for doubtful accounts or potential uncollectible amounts. This figure is crucial for understanding a company's liquidity and cash flow, as it represents funds that are readily available to be converted into cash. It typically reflects a company's efficiency in managing credit and collections.

User Avatar

AnswerBot

1mo ago

What else can I help you with?

Related Questions

How do you calculate net accounts receivable?

should accounts revceivable (net) bedeleted out Not sure what the first answer is saying, but net accounts receivable is total accounts receivable less allowance for doubtful accounts (accounts you think are not going to pay you)


How do you calculate accounts receivable turnover rate?

Net Sales / Average Accounts Receivable = Account Receivable Turnover


Net on demand is not Accounts Receivable payment standard in business?

Net on demand refers to a payment structure where payment is expected immediately upon request or delivery of goods and services. However, it is not a standard for accounts receivable, which typically involves terms such as net 30 or net 60 days, allowing customers time to settle their invoices. The standard accounts receivable practices aim to balance cash flow with customer relationships, while net on demand may pressure clients and disrupt these dynamics. Consequently, most businesses prefer established credit terms for managing receivables.


How calculate accounts receivable turnover ratio?

the formula of calculating account receivable turnover = Net Sales/ average gross receivable


Is cash on demand an accounts receivable payment term not standard in business?

No, Accounts receivable are amounts due from customers for credit sales


What is the formula for calculating net account receivable?

Net Accounts Receivable is found by subtracting the "noncollectable" amount in AR from the balance. Also referred to sometimes as ADA (allowance for doubtful accounts).


Does Accounts Receivable have a negative effect on Net Cash?

Yes , I guess


Which one of the approaches for the allowance procedure emphasizes the net realizable value of accounts receivable on the balance sheet?

Which one of the approaches for the allowance procedure emphasizes the net realizable value of accounts receivable on the balance sheet?


Why paying off accounts payable and collecting accounts receivable do not affect net income?

i have the same question!


What is the accounts receivable term for the average time it takes your customers to pay you?

Net


What is a contra accounts to accounts receivable?

A contra account to accounts receivable is typically the "allowance for doubtful accounts." This account is used to estimate and record the portion of accounts receivable that may not be collectible, reflecting potential bad debts. By maintaining this contra account, businesses can present a more accurate picture of their expected cash flows and financial position. It reduces the total accounts receivable balance on the balance sheet, providing a net receivable figure that is more realistic.


Do account receivable need to plus with net income to get net account receivable?

No, Accounts Receivable is not added to net anything. Net income is the "net" amount of all income. Accounts receivable is not considered "INCOME" until it is actually "received". Net income is something you've already received, not something you will receive in the future (as is accounts receivable).Net Receivables is defined as: The total money owed to a company by its customers, minus the money owed that will likely never be paid. Net receivables are often expressed as a percentage; the higher the percentage, the more money a company is able to collect from its customers and the better off the company is.Read more: http://www.investopedia.com/terms/n/netreceivables.asp#ixzz1tv4KQSMLThe Equation is Account Receivables - Allowance for Bad Debts