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Home Categories Corporate Finance Accounts receivable is the asset account on the balance sheet, which represents the money owed to the company in the short term. Receivables maturity is the process of distinguishing open receivables based on the length of time an invoice remains unpaid. Accounts receivable financing provides capital financing for a portion of a company’s receivables. Accretion refers to the gradual and gradual growth of assets. Accrual accounting is a method of accounting in which revenue or expenses are recorded at the time of the transaction, and not at the time the payment is received or made. Accruals are required for any income received or expenses incurred for which funds have not yet been exchanged. Accumulation is the accumulation of interest, income or expenses over time - a popular example is interest on a savings account. Accrued expenses are recognized in the books when they are incurred, not when they are paid. Accrued income is income that has been received but not yet received. An accrued liability arises when an entity has incurred expenses but has not yet paid them.