Concept explainers
Receivables
Receivables refer to an amount to be received in future. General classifications of receivables are
Accounts receivable
Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.
Note receivable
Note receivable refers to a written promise for the amounts to be received within a stipulated period of time. This written promise is issued by a debtor or borrower to lender or creditor. Notes receivable is an asset of a business.
To describe: Common types of receivables other than accounts receivable or note receivable.
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HORNGREN'S FINANCIAL & MANGERIAL ACCOUNT
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- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College