Question

Describe the following terms or accounts related to receivables

a) Receivables – what sorts of things are included

b) Trade receivables

c) Short versus long-term receivables

d) Accounts receivable

e) Non-trade receivables

Answer 1

a	Receivables simply means the money owed to an entity by its customers which the entity is yet to receive.
	Recevables shall include those money which the customers are yet to pay for the services provided or goods sold by the entity.
	Accounts Receivables can be in the form of cash or cash equivalent or in the form of Notes which is known as Notes Receivable
	It can also be in the form of Advances provided to employees or any other person other than customers.
b	Trade Receivables shall include only those receivables which the entity is yet to receive from its customers to whom any service is provided or goods are sold
c	Short-term receivables are those amount which are due for not more than 12 months, The range can be from a few days to 12 months, But in no case it can
	exceed 12 months. If the Receivables have exceed 12 months then the same will be shown as Long-term receivables and not under Short-term Receivables.
	Short-term Receivables are shown as Current Assets and Long-term Receivables are shown as Non-Current Assets.
d	Accounts Receivable and Trade Receivables are used alternatively and there is no such major difference.
	Accounts Receivables shall include only those receivables which the entity is yet to receive from its customers to whom any service is provided or goods are sold on Account.
e	Non-Trade Receivables are those Receivables which is owed by virtue of any non-trading activity. In other words the amount owed due to any transaction which does not occur
	in the normal course of business.