What are trade receivables?

CuriousTab

Discussion

Home ‣ Interview ‣ Accounting and Finance See What Others Are Saying!

Question
What are trade receivables?

Correct Answer

Trade receivables are amounts billed by a business to its customers when it delivers goods or services to them in the ordinary course of business These billings are typically documented on formal invoices, which are summarized in an accounts receivable aging report In the general ledger, trade receivables are recorded in a separate accounts receivable account, and are classified as current assets on the balance sheet if you expect to receive payment from customers within one year To record a trade receivable, the accounting software creates a debit to the accounts receivable account and a credit to the sales account when you complete an invoice When the customer eventually pays the invoice, the accounting software records the cash receipt transaction with a debit to the cash account and a credit to the accounts receivable account Trade receivables vary from non trade receivables in that non trade receivables are for amounts owed to the company that fall outside of the normal course of business, such as employee advances or insurance reimbursements Also, most or all of the transactions passing through the main accounts receivable account are generated by the accounting system, as you create customer invoices and credit memos, whereas the transactions recording non trade receivables nearly always involve journal entries

More questions

1. How would you automatically transfer your visitors to a new web page?

Discuss

Correct Answer: - You can do it with the help of meta tag mentioned below:

<META HTTP-EQUIV="Refresh" CONTENT="2"; URL="https://wwwyoursitecom">

Place this tag between <HEAD></HEAD> - It will load yousitecom in 2 seconds

3. Cash Reserve Ratio ( CRR) and Stautory Liquidity Ratio (SLR ) are terms most closely related to which of the following industries/markets :
Options
A. Mutual Fund
B. Income Tax
C. Stock Exchange
D. Banking

Discuss