Discuss the difference between accounts receivable and notes receivable.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 7, Problem 1Q

To determine

Discuss the difference between accounts receivable and notes receivable.

Expert Solution & Answer

Explanation of Solution

Receivables:

Receivables refer to an amount to be received in future. General classifications of receivables are accounts receivable, note receivable, and other receivables. Both accounts receivables and note receivable are trade receivables.

Difference between accounts receivable and notes receivable are:

Accounts receivable refers to the amounts expected to be received within a short period from customers upon the sale of goods and services on account. It will arise when customers are allowed to buy now and pay later. Note receivable refers to a written promise for the amounts to be received within a stipulated period of time. This written promise is issued by a debtor or borrower to lender or creditor. Notes receivable includes the maturity date/period, rate of interest.

Accounts receivable have shorter terms to maturity, while notes receivable usually have longer terms to maturity.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Actual variable overhead rate

Solve this financial accounting problem

Please give me true answer this financial accounting question

Answer 2

Question

Chapter 7, Problem 1Q

To determine

Discuss the difference between accounts receivable and notes receivable.

Expert Solution & Answer

Explanation of Solution

Receivables:

Receivables refer to an amount to be received in future. General classifications of receivables are accounts receivable, note receivable, and other receivables. Both accounts receivables and note receivable are trade receivables.

Difference between accounts receivable and notes receivable are:

Accounts receivable refers to the amounts expected to be received within a short period from customers upon the sale of goods and services on account. It will arise when customers are allowed to buy now and pay later. Note receivable refers to a written promise for the amounts to be received within a stipulated period of time. This written promise is issued by a debtor or borrower to lender or creditor. Notes receivable includes the maturity date/period, rate of interest.

Accounts receivable have shorter terms to maturity, while notes receivable usually have longer terms to maturity.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 7, Problem 1Q

To determine

Discuss the difference between accounts receivable and notes receivable.

Expert Solution & Answer

Explanation of Solution

Receivables:

Receivables refer to an amount to be received in future. General classifications of receivables are accounts receivable, note receivable, and other receivables. Both accounts receivables and note receivable are trade receivables.

Difference between accounts receivable and notes receivable are:

Accounts receivable refers to the amounts expected to be received within a short period from customers upon the sale of goods and services on account. It will arise when customers are allowed to buy now and pay later. Note receivable refers to a written promise for the amounts to be received within a stipulated period of time. This written promise is issued by a debtor or borrower to lender or creditor. Notes receivable includes the maturity date/period, rate of interest.

Accounts receivable have shorter terms to maturity, while notes receivable usually have longer terms to maturity.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 7, Problem 1Q

To determine

Discuss the difference between accounts receivable and notes receivable.

Expert Solution & Answer

Explanation of Solution

Receivables:

Receivables refer to an amount to be received in future. General classifications of receivables are accounts receivable, note receivable, and other receivables. Both accounts receivables and note receivable are trade receivables.

Difference between accounts receivable and notes receivable are:

Accounts receivable refers to the amounts expected to be received within a short period from customers upon the sale of goods and services on account. It will arise when customers are allowed to buy now and pay later. Note receivable refers to a written promise for the amounts to be received within a stipulated period of time. This written promise is issued by a debtor or borrower to lender or creditor. Notes receivable includes the maturity date/period, rate of interest.

Accounts receivable have shorter terms to maturity, while notes receivable usually have longer terms to maturity.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 7, Problem 1Q

To determine

Discuss the difference between accounts receivable and notes receivable.

Expert Solution & Answer

Explanation of Solution

Receivables:

Receivables refer to an amount to be received in future. General classifications of receivables are accounts receivable, note receivable, and other receivables. Both accounts receivables and note receivable are trade receivables.

Difference between accounts receivable and notes receivable are:

Accounts receivable refers to the amounts expected to be received within a short period from customers upon the sale of goods and services on account. It will arise when customers are allowed to buy now and pay later. Note receivable refers to a written promise for the amounts to be received within a stipulated period of time. This written promise is issued by a debtor or borrower to lender or creditor. Notes receivable includes the maturity date/period, rate of interest.

Accounts receivable have shorter terms to maturity, while notes receivable usually have longer terms to maturity.

Answer 6

Chapter 7, Problem 1Q

To determine

Discuss the difference between accounts receivable and notes receivable.

Expert Solution & Answer

Explanation of Solution

Receivables:

Receivables refer to an amount to be received in future. General classifications of receivables are accounts receivable, note receivable, and other receivables. Both accounts receivables and note receivable are trade receivables.

Difference between accounts receivable and notes receivable are:

Accounts receivable refers to the amounts expected to be received within a short period from customers upon the sale of goods and services on account. It will arise when customers are allowed to buy now and pay later. Note receivable refers to a written promise for the amounts to be received within a stipulated period of time. This written promise is issued by a debtor or borrower to lender or creditor. Notes receivable includes the maturity date/period, rate of interest.

Accounts receivable have shorter terms to maturity, while notes receivable usually have longer terms to maturity.

Answer 7

Chapter 7, Problem 1Q

To determine

Discuss the difference between accounts receivable and notes receivable.

Answer 8

Expert Solution & Answer

Explanation of Solution

Receivables:

Receivables refer to an amount to be received in future. General classifications of receivables are accounts receivable, note receivable, and other receivables. Both accounts receivables and note receivable are trade receivables.

Difference between accounts receivable and notes receivable are:

Accounts receivable refers to the amounts expected to be received within a short period from customers upon the sale of goods and services on account. It will arise when customers are allowed to buy now and pay later. Note receivable refers to a written promise for the amounts to be received within a stipulated period of time. This written promise is issued by a debtor or borrower to lender or creditor. Notes receivable includes the maturity date/period, rate of interest.

Accounts receivable have shorter terms to maturity, while notes receivable usually have longer terms to maturity.