![]() In contrast, notes receivable (an asset) is a more formal legal contract between the buyer and the company, which requires a specific payment amount at a predetermined future date. This receivable expansion allows a company to attract a more diverse clientele and increase asset potential to further grow the business.Īs you’ve learned, accounts receivable is typically a more informal arrangement between a company and customer that is resolved within a year and does not include interest payments. Companies, however, can expand their business models to include more than one type of receivable. So far, our discussion of receivables has focused solely on accounts receivable. Accounting for Receivables 57 Explain How Notes Receivable and Accounts Receivable Differ
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |