Skip to main content
Question

Why does Accounts receivable often are referred to as trade receivables?

Expert Solution

Want to see the full answer?

Check out a sample Q&A here
Blurred answer
Students who’ve seen this question also like:
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
Not helpful? See similar books
Intermediate Accounting: Reporting And Analysis
Learn more about
Financial Statements
marketing sidebar icon
Want to see this answer and more?
Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*
*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: How does the Trade notes payable differ from accounts payable?

A: Difference: Accounts payable is a short-term liability that is owed by the supplier to the creditor…

Q: Define Accounts Receivable (Trade Receivables, Receivables)

A: Definition: Current assets: The assets which could be converted into cash within one year like…

Q: Trade Accounts Receivable

A: Trade Accounts Receivable is the amount due from customers on account of sales made or services…

Q: What is the difference between accounts receivable and notes receivable?

A: Note receivable is the instrument that represents the amounts of money borrowed or receivables…

Q: What are some common types of receivables other than accounts receivable and notes receivable?

A: Receivables are the amount due to be received in future such as accounts receivable, notes…

Q: Notes Receivable and Accounts Receivable can also be called trade receivables. True False

A: Notes receivables and accounts receivable are considered in terms of sales. Answer is  true.

Q: What is the primary difference between accounts receivable and notes receivable?

A: Receivable: Receivable refers to an amount to be received in future. General classifications of…

Q: amount to be presented as Trade Accounts Receivable

A: 1. Installment accounts receivable amounting P50,000 is not a trade receivable due within a year. It…

Q: What is pledging of accounts receivable?

A: Accounts receivable: Accounts receivable is defined as any amount of money payable by…

Q: What are the reasons that a company gives trade discounts? Why are trade discounts not recorded in…

A: Reason for providing trade discounts: A reduction in list or catalog price which is granted by the…

Q: What are the reasons that a company gives trade discounts? Why are trade discounts not recorded in…

A: Reason for providing trade discounts: A reduction in list or catalog price which is granted by the…

Q: What is the difference between an account receivable and a note receivable?

A: Receivable: It can be defined as the amount that is owed by the customers from the business.

Q: Define the term Accounts Receivable Turnover?

A: Accounts receivable turnover: This is the ratio which analyzes the number of times accounts…

Q: How is Trade receivables turnover Ratio computed? What does it indicage?

A: Trade receivables: Trade receivables are the amounts which are billed by the business to its…

Q: Why might a business prefer a note receivable to an account receivable?

A: Account receivables are the due payment held by the customers to whom firm have rendered services or…

Q: Why might a business prefer a note receivable to an account receivable?

A: An account receivable is a simple promise to repay the seller done by customer which is due as a…

Q: What is the difference between ‘accounts payable (AP)’ and ‘accounts receivable (AR)’?

A: Credit Transaction: Under a credit transaction, the exchange of goods or services takes place where…

Q: What is the difference between Accounts Receivable andRevenue?

A: Accounts receivables: Accounts receivables refers to the debtors that arise in case of credit sales…

Q: What does the accounts receivable turnover ratio measure, and how is it calculated?

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: Why Do Transferors of Receivables Generally Want to Account for the Transfer as a Sale?

A: Click to see the answer

Q: _____ is the example of Liabilities.     Sales     Supplies in Hand     Account Receivables…

A: The Question has covered the concept of Liabilities. Liability means which have an obligation to…

Q: How does accounting for uncollectible accounts affect the amount reported for net accounts…

A: Uncollectible accounts refer to that portion of credit sales which the company does not expect to…

Q: What are the reasons that a company gives trade discounts?Why are trade discounts not recorded in…

A: A reduction in list or catalog price which is granted by the supplier of goods/services can be…

Q: What is the difference between Accounts Payable and Accounts Receivable? Explain each in generic…

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

Q: Which form of receivable financing is equivalent to an absolute sale of accounts receivable?   a.…

A: Solution: "Factoring"  form of receivable financing is equivalent to an absolute sale of accounts…

Q: What is the difference between accounts payable andaccounts receivable?

A: Purchases means amount or value of goods that is purchased by the business. Cash for the purchases…

Q: In what way do accounts receivables and accounts payables differ from each other

A: Solution: Accounts receivables represent amount owed by customer for merchandise sold by business.…

Q: What is accounts receivable management?

A: Accounts receivable management is method for ensuring that whether the customers are paying their…

Q: What are the types of accounts receivable?

A: Account receivable is an asset account that represent amount due to the company from debtors…

Q: otal of trade receivables remaining

A: Click to see the answer

Q: What is the difference between Notes Payable and Accounts Payable?

A: Introduction: Accounts payable  is an account within the general ledger that represents a company's…

Q: Define the term accounts receivable?

A: Click to see the answer

Q: What is the nature of a “discount” on notes payable?

A: Notes payable: Notes Payable is a written promise to pay a certain amount on a future date, with the…

Q: What is the nature of a “discount” on notes payable?

A: A discount on Notes payable is a contra liability account to the Notes payable account. When the…

Q: What is the nature of a “discount” on notes payable?

A: Notes payable:  Notes Payable is a written promise to pay a certain amount on a future date, with…

Q: What is the expense account associated with the cost of uncollectible receivables called?

A: Accounts receivable:   Accounts receivable refers to the amount to be received within a short…

Q: What is the expense account associated with the cost of uncollectible receivables called?

A: Click to see the answer

Q: Which is a valid statement regarding the gross price, net price and allowance methods of recording…

A: Accounts receivable is the amount that has been earned but not yet received by the company.

Q: Define Sale of Receivables.

A: Sales: A sale refers to the operating activity through which the company earns income by selling…

Q: What are the differences between Notes Payable and Accounts Payable?

A: Explain the difference between a note payable and an account payable as follows:Notes payable: A…

Q: What is the difference, definition, examples between account receivables and fees earned?

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: How does account receivable work?

A: The term "account receivable" denotes that payment for previously completed work has yet to be…

Q: How does account receivable work?

A: The term "account receivable" denotes that payment for previously completed work has yet to be…

Q: When should the transfer of receivables be recorded as a sale?

A: When a Note receivable is passed to a Transferor, the transferred value is separated from the…

Q: Explain the concept of American depositary receipts (ADRs).

A: Answer: Meaning of American depositary receipts (ADRs): American negotiable securities that signify…

Q: What are the feature of Receipt and Payment Account?

A: Receipt and Payment Account is a summary of cash Receipts and payments in an accounting period. Not…

Q: Is it a credit memo issued by a vendor or a debit memo issued by a purchaser? What's the difference?

A: The difference will be explained:

Q: Should PT. AAH change its current account receivable policy?

A: Accounts receivable refers to the total amount of money for which a company haven't received the…

Q: ifference between accounts receivable and notes receivable.

A: Click to see the answer

Q: what is debit and credit?

A: Debits and credits seem to be a bookkeeping notation framework that determines how and where every…

Knowledge Booster
Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
  • Intermediate Accounting: Reporting And Analysis
    Accounting
    ISBN:9781337788281
    Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
    Publisher:Cengage Learning
    College Accounting, Chapters 1-27
    Accounting
    ISBN:9781337794756
    Author:HEINTZ, James A.
    Publisher:Cengage Learning,
    Century 21 Accounting Multicolumn Journal
    Accounting
    ISBN:9781337679503
    Author:Gilbertson
    Publisher:Cengage
  • Century 21 Accounting General Journal
    Accounting
    ISBN:9781337680059
    Author:Gilbertson
    Publisher:Cengage
    College Accounting (Book Only): A Career Approach
    Accounting
    ISBN:9781337280570
    Author:Scott, Cathy J.
    Publisher:South-Western College Pub
    Cornerstones of Financial Accounting
    Accounting
    ISBN:9781337690881
    Author:Jay Rich, Jeff Jones
    Publisher:Cengage Learning
  • Intermediate Accounting: Reporting And Analysis
    Accounting
    ISBN:9781337788281
    Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
    Publisher:Cengage Learning
    College Accounting, Chapters 1-27
    Accounting
    ISBN:9781337794756
    Author:HEINTZ, James A.
    Publisher:Cengage Learning,
    Century 21 Accounting Multicolumn Journal
    Accounting
    ISBN:9781337679503
    Author:Gilbertson
    Publisher:Cengage
    Century 21 Accounting General Journal
    Accounting
    ISBN:9781337680059
    Author:Gilbertson
    Publisher:Cengage
    College Accounting (Book Only): A Career Approach
    Accounting
    ISBN:9781337280570
    Author:Scott, Cathy J.
    Publisher:South-Western College Pub
    Cornerstones of Financial Accounting
    Accounting
    ISBN:9781337690881
    Author:Jay Rich, Jeff Jones
    Publisher:Cengage Learning