Section 3
Overview of Receivables
Book
Version 3
By Boundless
By Boundless
Boundless Accounting
Accounting
by Boundless
4 concepts
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What Is a Receivable?
A receivable is money owed to a business by its clients and shown on its balance sheet as an asset.
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Types of Receivables
Receivables can generally be classified as accounts receivables or notes receivable, though there are other types of receivables as well.
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Recognizing Accounts Receivable
If you are operating under the accrual basis, you record account receivable transactions irrespective of any changes in cash.
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Valuing Accounts Receivable
Receivables of all types are normally reported at their net realizable value, which is the amount the company expects to receive in cash.