Question

Define receivables and identify the different types of receivables.

Answer 1

Receivable is the amount due from a customer, employee, supplier or any other party.

Different types of Receivables are as follows:

Notes Receivable -It is in the form of promissory note which states  to receive specific amount of money in future date, classified as current (if due within 12 months) or non-current (if due after 12 months) of the balance sheet date.

Trades Receivable-It refers to  sale of a product or service to a customer on credit. Trade receivables is the amount that business owns to its customers when it delivers goods or services to them.

Other Types of Receivables like intrest receivable. it is interest which is earned on Notes Receivable or other assets