What does GAR mean in ACCOUNTING
General Accounts Receivable (GAR) is an accounting term used to refer to a company's outstanding amounts owed by customers. GAR are funds customers owe a business for goods or services rendered.
GAR meaning in Accounting in Business
GAR mostly used in an acronym Accounting in Category Business that means General Accounts Receivable
Shorthand: GAR,
Full Form: General Accounts Receivable
For more information of "General Accounts Receivable", see the section below.
» Business » Accounting
Essential Questions and Answers on General Accounts Receivable in "BUSINESS»ACCOUNTING"
What is General Accounts Receivable?
General Accounts Receivable (GAR) is an accounting term used to refer to a company's outstanding amounts owed by customers.
How Are GAR Recorded On Financial Statements?
GAR figures can be found on financial statements as an asset of the business. GAR are usually categorized as current assets, meaning the debts must be paid within one year.
How Does GAR Impact Cash Flow?
Since GAR is considered an asset, it can help with cash flow because it represents money that will eventually come into the business if customers make their payments on time.
What Are Some Potential Risks Of Having High Levels Of GAR?
Having high levels of GAR increases a company's risk because there is no guarantee that all or any of the debtors will actually pay their invoices. If large numbers of customers do not pay, it could leave a business in serious financial difficulty.
Final Words:
Understanding and managing General Accounts Receivable is important for any business that deals with debtors or customers who purchase goods and services on credit terms. By proactively monitoring customer accounts and striving to keep payment times up-to-date, businesses can better manage their cash flows and reduce overall risk associated with not collecting on customer debt obligations.
GAR also stands for: |
|
| All stands for GAR |