Account Stated

Business, Legal & Accounting Glossary

Definition: Account Stated




What is the dictionary definition of Account Stated?

Dictionary Definition


n. a statement between a creditor or the person to whom money is owed and a debtor (the person who owes) that a particular amount is owed to the seller as of a certain date. Often the account stated is a bill, invoice or a summary of invoices, signed by the customer or sent to the customer who pays part or all of it without protest. This is important when a frustrated businessman sues for “account stated” which sets both the debtor’s liability and the exact amount the debtor must pay, which is less complicated than claiming a debt is due and payable. An account stated may carry a longer statute of limitations (time to file suit) than some other forms of debt depending on the state.


Full Definition of Account Stated


An amount that accurately states money due to a creditor; a debt arising out of transactions between a debtor and creditor that has been reduced to a balance due for the items of account.

A creditor agrees to accept and a debtor agrees that a specific sum is a true and exact statement of the amount he or she owes. The debtor may agree in words to pay the amount, or it may be understood that the debtor has accepted the account stated by failing to object within a certain period of time.


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/account-stated/
Modern Language Association (MLA):
Account Stated. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. October 15, 2021 https://payrollheaven.com/define/account-stated/.
Chicago Manual of Style (CMS):
Account Stated. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/account-stated/ (accessed: October 15, 2021).
American Psychological Association (APA):
Account Stated. PayrollHeaven.com. Retrieved October 15, 2021, from PayrollHeaven.com website: https://payrollheaven.com/define/account-stated/

Definition Sources


Definitions for Account Stated are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 8th October, 2021 | 2 Views.