| aging schedule | A compilation of accounts receivable by the age of account.
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| average collection period (ACP) | Average amount of time required to collect an account receivable. Also referred to as days sales outstanding.
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| average daily sales (ADS) | Annual sales divided by 365 days.
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| cash discounts | A discount given for a cash purchase. One reason a cash discount may be offered is to speed up the collection of receivables.
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| collection policy | Procedures followed by a firm in attempting to collect accounts receivable.
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| credit analysis | The process of determining whether a credit applicant meets the firm's standards and what amount of credit the applicant should receive.
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| credit instrument | Device by which a firm offers credit, such as an invoice, a promissory note, or a conditional sales contract.
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| credit periods | Time allowed a credit purchaser to remit the full payment for credit purchases.
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| credit scoring | Determining the probability of default when granting customers credit.
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| factoring | Sale of a firm's accounts receivable to a financial institution known as a factor.
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| invoice | Bill written by a seller of goods or services and submitted to the purchaser.
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| terms of the sale | Conditions on which firm proposes to sell its goods and services for cash or credit.
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