Due From Account

AAA

DEFINITION of 'Due From Account'

An asset account in the general ledger that indicates the amount of deposits currently held at another company. The "due from" account is typically used in conjunction with a "due to" account to reconcile which accounts the money is due from and due to.


INVESTOPEDIA EXPLAINS 'Due From Account'

The general ledger is the centralized source that contains all the financial accounts for a company. It contains debit and credit accounts, including the due from account, which is a debit account. The due to account is also sometimes referred to as intercompany receivables in the chart of accounts.

RELATED TERMS
  1. Correspondent

    The name given to a bank, broker, dealer, or financial institution ...
  2. General Ledger

    A company's main accounting records. A general ledger is a complete ...
  3. Finance

    The science that describes the management, creation and study ...
  4. Liability

    A company's legal debts or obligations that arise during the ...
  5. Inherent Risk

    The risk posed by an error or omission in a financial statement ...
  6. Deferred Tax Asset

    A deferred tax asset is an asset on a company's balance sheet ...
Related Articles
  1. Analyzing A Bank's Financial Statements
    Fundamental Analysis

    Analyzing A Bank's Financial Statements

  2. Off-Balance-Sheet Entities: An Introduction
    Investing

    Off-Balance-Sheet Entities: An Introduction

  3. Intangible Assets Provide Real Value ...
    Markets

    Intangible Assets Provide Real Value ...

  4. Variable Costs
    Investing

    Variable Costs

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center