Receivables are claims of money, goods, or services to customers or other parties. For financial reporting purposes, accounts receivable are classified into current and non-current receivables. Current receivables are expected to be collectible within one year or selaa period. All other receivables are classified as non-current receivables. Receivables further classified as non-trade receivables and trade receivables.
Trade receivables are amounts owed by customers for goods and services that have been provided as part of normal business operations. Usually classified as accounts receivable and notes receivable.
Accounts receivable is a verbal promise from the buyer to pay for goods or services sold. The note receivable is a written promise to pay a sum of money tetentu on a specific date in the future.
Non-trade receivables from various transactions. Some examples of non-trade receivables are:
1. advances to employees and staff
2. advances to subsidiaries
3. deposit to cover possible losses and damages
4. Deposit as a guarantee of the provision of services or payment
5. Dividends and interest receivable
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