Chapter 3: Receivables

They are monetary claims against other people that are mainly the result of the sale of products or services or the lending of money

Receivables are divided into three categories:

________ arise from sales of merchandise or services in the ordinary courses of business.

Examples of trade receivables include ________ and __________.

___________ refers to oral promises by the customer to pay cash.

_________ is a written promise by the customer to pay cash (includes the terms, interests, maturity date, etc.).

Unlike the trade receivables type, _________ do not arise from the ordinary course of business.

_________ is income already earned but not yet received.

These are collectibles related to bonds, notes, and other long-term receivables. If the entity is a financial institution, then the interest receivable is considered a trade receivable, instead of non-trade.

These are collectibles representing money to be paid to the entity for rent of the properties it owns. These may include other service charges.

_________ income is received for artistic works or professional services.

These are collectibles representing money to be paid to the entity for investment on another entity.

Examples of non-trade receivables include ________, __________, _______, and _________.

____________ are volume discounts given by sellers to encourage customers to order in bulk.

_________, which are also known as sales discounts, are given by sellers to buyers who pay earlier than the due date to avail the discount.

Cash discount is usually presented to include _________, _______, and _________.

__________ is the time between the acquisition of assets for processing and their realization in cash.

The ___________ should be adequate to cover the operations in the normal operating cycle.