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What are Receivables and what are their Characteristic Features?
Receivables are the amounts due from customers on the account of sale of goods or services that have been performed, or as claim on loans.
Receivables can be categorized into two primary types:
a) Trade Receivables, which are basically the open accounts of the customers where money is due after the sale of a good or performance of a service.
b) Nontrade Receivables, where the payment is due but not with respect to sale of goods or services. Advance to employees, Dividends receivables are some examples of this kind.
The principle characteristics of receivables are:
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