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- Payment is deferred or made in installmentsIn accounting, "on account" refers to a type of transaction where payment is deferred or made in installments1. It represents a credit arrangement between the buyer and the seller, where the buyer owes the seller an amount of money for goods or services received1. "On account" is also used to denote the partial payment of an amount owed2. It can also be referred to as “on credit”2.Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.In accounting, the term “On Account” refers to a type of transaction where payment is deferred or made in installments, typically with a pre-determined payment schedule. It represents a credit arrangement between the buyer and the seller, where the buyer owes the seller an amount of money for goods or services received.livewell.com/finance/what-does-on-account-mean-i…"On account" is an accounting term that denotes partial payment of an amount owed. On account is also used to denote the purchase/sale of goods or services on credit. On account can also be referred to as “on credit.”www.investopedia.com/terms/o/on-account.asp
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