Changes

==Examples==

==Examples==

* Until an individual receives a paycheck at the end of each pay period, they technically possess an account receivable, as they have already rendered a service to their employer but have not yet received financial compensation for it.

* Until an individual receives a paycheck at the end of each pay period, they technically possess an account receivable, as they have already rendered a service to their employer but have not yet received financial compensation for it. (However, these are usually not recorded as accounts receivable on financial statements, though at year-end an amount will be shown for accrued payroll to accurately reflect the company's financial position.)

* Many businesses allow a certain percentage of their goods and services to be sold on credit. This allows them to avoid the periodic hassles of dealing with large amounts of cash or money transfers when vending goods or services. When you purchase a car and agree to pay the dealership through monthly payments (without going through a bank as a middle man), this is sometimes considered an account receivable, because the car company has already sold you the good (in this case, the car) but have not yet received your full payment for the car.

* Many businesses allow a certain percentage of their goods and services to be sold on credit. This allows them to avoid the periodic hassles of dealing with large amounts of cash or money transfers when vending goods or services. When you purchase a car and agree to pay the dealership through monthly payments (without going through a bank as a middle man), this is sometimes considered an account receivable, because the car company has already sold you the good (in this case, the car) but have not yet received your full payment for the car.