When interest rates fall, real estate prices tend to increase. Why? Find out here.
What is an Accounts Receivable?
Accounts receivable, or A/R, is an accounting term that means the detailing of transactions with the billing of customers who owe money to an organization after the purchase of goods and services. With most businesses, customers will typically get an invoice that details the transaction and the time frame in which the invoice must be paid. The invoice is usually mailed through the post office or sent via electronic mail.
One of the typical time frames for payment is called Net 30. Net 30 means that the payment for the invoice is due 30 days from the date printed on the document. There are other common payment terms which are Net 45 or Net 60. These are just examples but any time period could be used if both the business and customer agree on the time frame.
Marking the transaction of a particular customer or client can be a simple task but the process of maintaining the records of all transactions and payments received can actually be a full time position. A typical practice among many industries is the receipt of payments up to 10-15 days after the due date has been reached. These standards are established due to particular industry standards or a policy within a type of corporation or it could be because of the financial position of the client.
When detailing a company’s balance sheet, the account receivable number is the amount that customers owe the company. This is a good way to know what your projected revenue will be.
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Related Articles at Investing School:
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- Investment Terms
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- Adding an Online Savings Account as Part of Your Investment Strategy
Stocks Falter but Manage to Hold on to Gains
U.S. equity futures weakened after an early session surge but managed to eke out a small gain. Overnight strength was fueled by greater demand for higher yielding assets while the early morning rally was triggered following the release of a report showing a rise in consumer confidence. Thin trading conditions and the lack of buyers were the driving forces behind this afternoon’s weakness.
Global stock prices rose overnight following a sell-off in the Dollar, signaling greater demand for higher yielding assets. The thought of a recovery in the U.S. economy also contributed to the early strength.
Treasuries finished higher following early morning weakness. March T-Bonds picked up strength late in the session when the market regained a key 50% level at 115’08. Today’s strong close has the market in a position to follow-through to the upside tomorrow. The next potential upside target is 116’05.
Dollar Holds Gain after Friendly Consumer Confidence Report
The U.S. Dollar managed to hold on to its gains after erasing earlier losses following the release of a friendly Consumer Confidence report. Although the reported figure of 52.9 was slightly less than estimates, it still reflected continuing strength in the economy. This morning the S&P/Case Shiller report on home prices was flat. There was almost no reaction to this report by Forex traders. Expect more of the same trading tomorrow as major players remain absent during the holiday week.
The Dollar was down overnight as traders took advantage of the thin, holiday trading by taking profits after the almost month-long rally. Demand for higher yielding assets also contributed to the weakness for the second day in a row buoyed by a rise in global equity markets. Finally, some of the selling pressure can be attributed to concerns over rising debt in the U.S.
The EUR USD finished lower after giving up early gains. The friendly U.S. Consumer Confidence report erased overnight gains triggered by a report showing rising prices in Germany.