Definition of Accounts Receivables
Accounts receivable are usually current assets that result from selling goods or providing services to customers on credit. Accounts receivable are also known as trade receivables.
Definition of Receivables
The term receivables sometimes refers to a company's accounts receivables. However, the term receivables could include both trade receivables and nontrade receivables.
Nontrade receivables exclude accounts receivable and may appear on the balance sheet as other receivables.
Examples of Nontrade Receivables
Some examples of nontrade or other receivables include:
- Interest receivable
- Income tax receivable
- Insurance claims receivable
- Receivables from employees