What are Receivables? Explain the terms Trade and Non Trade 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.


  • 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.


  • 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

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.