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RECEIVABLES
Receivable are all amounts OWED to a company that are expected to be settled in cash.
Receivables can be classified as either trade or non trade receivables.
TRADE RECEIVABLES
- Mostly accounts or notes receivable.
- Trade receivables are the most common type of receivable reported in the balance sheet and usually represent the largest dollar amount.
NON TRADE RECEIVABLES
- Either current or non current.
- Examples of non trade receivables are accounts or notes receivable arising from the following types of transaction:
- Claims for losses or damages
- Claims for tax refunds
- Dividends or interest receivable
- Advances to employee
- Sales of property other than inventory
- Deposits with creditors or utilities
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