Question

Question 1

Explain how and where accounts receivable are reported on the financial statements, and what the difference is between accounts receivable and notes receivable.

Answer 1

Accounts receivables are listed on the balance sheet as a current asset.

difference between notes receivable and account receivables - :

Note receivable is a written promissory note extending credit to the other party, receivable in the future at a specified date along with interest.

while account receivable is the money owed by customers for purchasing goods or services on credit

Notes receivable can be either a current asset or a non-current asset. If it matures within one year period, it is a current assets.

Accounts receivable is a current asset since the amount is generally payable within one year of sale of goods and services.